By Axel  Reiserer

The European Bank for Reconstruction and Development (EBRD) has invested €16 million(US$19million) in a €100 million senior preferred bond issuance by LHV Group, combining support for capital market development with green financing in Estonia.     LHV Group is the largest domestic financial-services group in Estonia, providing banking, asset management, and insurance services. The company is listed on the Tallinn Stock Exchange and operates through digital channels, with a 10 per cent share of the Estonian lending market.

The EBRD investment builds on the Bank’s strong commitment to the development of capital markets in the Baltic states. The investment also seeks to increase green financing in Estonia, enabling LHV Group to support new green projects in the coming years, in line with the EBRD’s strategy.

EBRD Director for EU Banks and Structured Finance in the Financial Institutions group, Melis Ekmen Tabojer said: “We are very happy to support a digital domestic financial-services group with its inaugural senior preferred bond issuance, which will support the transition to a green economy in Estonia.”

Chief Executive Officer of LHV Group, Madis Toomsalu commented: “We are very happy to see the EBRD among the investors who are helping us deliver accessible financing to the Estonian economy. LHV is a fast-growing financial group supporting Estonian small and medium-sized enterprises and retail customers in thinking big and fulfilling their plans for a better future.”

The EBRD has invested in the Baltic states since they regained their independence. To date, the Bank invested €2.5 billion in 291 projects in Estonia, Latvia and Lithuania combined. In Estonia alone, the EBRD has committed €768 million through 96 projects.