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Latvenergo Green Bonds



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

28 May 2020



PSD disclosed:

14 Jun 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

A subscription of up to EUR 60 million in green bonds issued by Latvenergo AS, a Latvian energy utility company (the "company"), under a EUR 200 million green bond programme. The bonds are to be listed on the Nasdaq Riga exchange. On 7th May 2021, the Bank subscribed EUR 3 million out of the EUR 50 million first tranche issued under the programme. 

Project Objectives

The proceeds from the green bond issuance programme will be used to renovate the company's distribution network, and partly finance the rehabilitation of three hydro power plants in Latvia. The investments will contribute to integration of more renewable sources into Latvia's electricity network, especially small and medium-sized solar and wind projects as well as increasing the reliability of the country's energy supply.

Transition Impact

ETI score: 61

The operation will be 100% GET compliant, delivering climate mitigation benefits through energy efficiency and the upgrade of low-carbon energy generation ("Green" transition quality).

The operation will contribute to the local debt capital market development which suffers from a lack of investable securities and poor secondary market liquidity ("Resilient" transition quality).

Client Information


Latvenergo AS is the Latvian state-owned energy utility company, 100% owned by the Republic of Latvia and one of the largest power suppliers in the Baltic states. The company operates in (i) electricity distribution, and (ii) electricity and heat generation and trade.

EBRD Finance Summary

EUR 48,000,000.00

A bond subscription up to EUR 60 million.

Total Project Cost

EUR 200,000,000.00

The Company expects to issue up to EUR 200 million bonds. The bond proceeds will be used to finance (i) investments in the electricity distribution network, (ii) the rehabilitation and upgrade of three existing hydro power plants, and (iii) environmentally sustainable management of living natural resources and land use.


Financing structure and Risk mitigation: The Bank's financing is to provide a valuable signal to the market, close the funding gap and facilitate a successful placement in the current uncertain debt capital market environment, given the Covid-19 pandemic.c

Environmental and Social Summary

Categorised B (2019 ESP). The Project is a capital market transaction and the Bank's due diligence has been limited to a review of publicly available documents, questionnaires and discussion with the Company's EHS management by the ESD specialists which allowed the ESD to undertake an adequate assessment of environmental and social risks and impacts of this Project in accordance with the Bank's 2019 ESP. The Bank has previously provided financing to the Company (Riga CHP-2 CCGT Project) and has undertaken a high level due diligence of the Company in the past. The Company publishes its annual non-financial information reporting in line with EU requirements. The Green Bond characteristics of the issuance have been reviewed by Treasury and ESD experts who found it meeting the Bank's criteria for Green Bond investments, allowing the Bank to publicly recognise the issuance as a Green Bond.

The Bank's use of proceeds will be allocated through conditions in the Framework Agreement to the strengthening of the electricity distribution network, needed for the development of renewable energy projects and energy efficiency. The Company will also upgrade existing three hydropower plants to increase efficiency as part of the bond programme. The Bank reviewed these investments as well as corporate EHS management as part of the ESDD. Latvenergo has a dedicated EHS management team, which is developing corporate EHS management systems and has the institutional capacity to implement the Bank's Performance Requirements. It develops sustainability reports for the group and individually for some subsidiaries. Those reports show that, overall, Latvenergo has a good compliance record and no material non-compliance issues have been identified. Latvenergo has focused on renewable energy generation and upgrade of existing CHPs and does not operate any coal-fired assets. The ESDD has also confirmed that the Company has good HR Polices in line with best practice and is implementing COVID-19 response measures.

The EBRD proceeds will not be used for any Category A projects and the Company will not invest in any coal fired units in the future.

An ESAP has been developed based of the findings of the ESDD and in addition to the above, it includes requirements relating to, among others, strengthening of non-financial reporting in line with best practices and EU law and associated guidance on climate related information. The ESAP further requires that if the Company was to develop projects in sensitive areas or of sensitive nature, those would need a full ESIA in line with Bank requirements. The ESAP has been agreed with the Company and is included in the Framework Agreement.

The Bank will monitor the Company's performance through reviewing annual reports prepared by the Company and site visits as deemed necessary. 

Company Contact Information

Janis Irbe
+371 67 728 222
Pulkveža Brieža street 12, Rīga, LV-1230, Latvija

PSD last updated

14 Jun 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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