OREANDA-NEWS. On May 25, 2009 Chairman of the Management Board and CEO of Eesti Energia Sandor Liive, Chief Financial Officer Margus Kaasik and European Investment Bank (EIB) Vice-President Eva Srejber signed a EUR 150 million loan agreement. The loan agreement will contribute to implementation of the Eesti Energia investment programme, reported the press-centre of Eesti Energia.

Eesti Energia will use the loan capital to finance a three-year investment programme, aimed at modernizing and developing Estonian electricity networks. “Electricity networks have been an Eesti Energia investment priority throughout the years, as investments in this area ensure greater reliability and efficiency and better quality of electrical service to every person living in Estonia,” said Eesti Energia CEO Sandor Liive in commenting on the company's investment decisions. Financing of investments in electricity networks would provide a substantial contribution to the common EU objective of Diversification and Security of Internal Supply and would further enhance Eesti Energia’s role on the Baltic electricity market.

Eesti Energia CFO Margus Kaasik points out that Eesti Energia is in a capital-intensive business field where the company’s own funds are not enough to finance all of the necessary investments. “Eesti Energia earned 88 million euros in net profit last year and the strong financial results make it possible to enter into this loan agreement for financing essential investments. Each additional euro in profit allows us to invest four euros into Estonia’s energy sector with the help of bank loans,” said Kaasik.

Eesti Energia invested 226 million euros in the 2008/2009 financial year. The majority of the investment volume – 140 million euros – was targeted at Estonia’s power networks. Eesti Energia’s total investment volume last financial year was the highest in the last six years and 32% greater than in the 2007/2008 financial year.

For energy efficiency in Estonia, the EIB has already provided financing to Eesti Energia to support the rehabilitation and extension of power transmission in 2004. The EIB attaches particular importance to this cooperation to ensure a reliable energy supply for Estonia’s citizens and the Baltic region as a whole.