Enefit Green borrows €260 million to refinance Nelja Energia debt

Map of Enefit Green and Nelja Energia green energy production facilities.
Map of Enefit Green and Nelja Energia green energy production facilities. Source: Eesti Energia

Enefit Green, the renewable energy subsidiary of Eesti Energia, has signed term loan contracts in the total amount of €260 million to refinance the existing debt of Nelja Energia, the renewable energy company it acquired last month.

The contracts were signed on a bilateral basis with SEB in the amount of €200 million and Swedbank in the amount of €60 million. The term of the unsecured loans is five years, with a seven-year repayment schedule. The term loans were taken out with the aim of refinancing Nelja Energia's existing debt, which was assumed in the course of the recent acquisition, as well as for general corporate purposes, Eesti Energia told the Tallinn Stock Exchange (TSE).

The Estonian government has decided in principle to list Enefit Green. Chairman of the Economic Affairs Committee of the Riigikogu Sven Sester (Pro Patria) told BNS in mid-November that listing could happen in about half a year.

The shareholders of Enefit Green and Nelja Energia signed the contract of purchase and sale of the shares of Nelja Enegia on 29 May, when the shares were valued at €289 million.

As part of the transaction, Enefit Green also took over Nelja Energia's liabilities in the amount of €204 million. 77% of Nelja Energia shares belonged to Vardar Eurus, a company owned 90% by Norwegian local governments and 10% by NEFCO. 23% of Nelja Energia shares belonged to investors of Estonian origin.

With the acquisition of Nelja Energia, the amount of renewable electricity produced by Enefit Green will almost triple from the present 0.4 TWh to more than one terawatt-hour. Enefit Green last year produced altogether 372 GWh of renewable energy. Enefit Green owns four wind farms with a capacity of 111 megawatts, three cogeneration plants in Estonia and Latvia, one hydroelectric power plant and one solar power plant. Enefit Green produces energy from wind, biomass, water, mixed municipal waste and solar.

Nelja Energia owned 17 wind farms in Estonia and Lithuania with a total capacity of 287 megawatts. In addition, the company owned a pellet factory and combined heat and power plant in Latvia and had minority ownership in two biogas stations in Estonia. Nelja Energia produced 804 GWh of renewable energy in 2017.


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Editor: Aili Vahtla

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