The funding will be used to renovate public squares and parks, schools, social housing, sidewalks, bicycle routes, street lighting, waste centres, and water and sewage networks.

Tallinn wants to invest in green and sustainable solutions after being awarded the title of 2023 European Green Capital last year.

Mayor of Tallinn Mihhail Kõlvart (Center) said the loan gives the city a chance to "improve the lives of our citizens".

Thomas Östros, Vice-President of EIB said: "The future of cities has to be sustainable, and the EIB has really appreciated Tallinn's approach to renew and develop its urban infrastructure."

 "More energy-efficient buildings, more space for bicycles and better public spaces are definitely in line with what we should be financing," he added.

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

Since 1993, the EIB has invested more than €3.5 billion in Estonian projects.

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