Coop Pank obtains 15 million euros for the funding of green projects in the field of energy
28.12.2023
Coop Pank AS entered into an agreement on Tuesday with the European Energy Efficiency Fund (EEEF), co-financed by the European Union, on the basis of which the bank will be taking an unsecured subordinated loan of 15 million euros from the fund for the financing of energy efficiency and renewable energy projects. The loan agreement is a capital instrument forming part of the bank’s own second-tier funds.
The loan comes with a term of 10 years and an interest rate of 6 months’ Euribor + 3.25% per annum. It must be repaid in full in a single amount, but the bank has the right, with the permission of the Financial Supervision and Resolution Authority, to repay the loan ahead of time once five years has passed from the date of its issuing.
Coop Pank CFO Paavo Truu says the bank obtained the capital on very favourable conditions. “Partnering with the EEEF is an important step in decarbonising Coop Pank’s loan portfolio as well,” he noted. “We’ve been measuring the carbon footprint of our direct and indirect activities for the last two years now, so we’re fully aware of the CO2 impact our different fields of activity are having. The greatest environmental impact that banks have comes from their lending activities, which is why we consider it so important to reduce the CO2 footprint of our loan portfolio, which in turn will contribute to Estonia achieving energy independence and its green goals.”
The funds obtained as part of the loan agreement will be used for the continued implementation of the bank’s growth strategy, primarily channelling them into projects that promote energy efficiency or renewable energy production, among them:
- the microgeneration of electricity, heating and cooling, including relevant networks, based on renewable and/or local energy sources, and energy storage solutions;
- public transport based on electrical energy, including the infrastructure needed to maintain it;
- and investments to improve the energy efficiency of regional infrastructure and public and private buildings, including energy storage and smart metering solutions.
In 2022 Coop Pank also became a member of the United Nations Environment Programme Finance Initiative (UNEP FI) and approved the Responsible Banking Principles, bringing the bank’s business strategy into alignment with the UN Sustainable Development Goals and the objectives of the Paris Climate Agreement so as to increase the bank’s positive impact on society.