By EBRD Press Office

The European Bank for Reconstruction and Development (EBRD) is supporting capital market development and green financing in the Baltics with a €40 million(US$45.12million) investment in the €200 million senior preferred bond issuance by Latvia’s AS Citadele banka.

The investment contributes to expanding green financing in the Baltic countries, whereby Citadele committed to allocate 150 per cent of the Bank’s proceeds to new green projects in line with EBRD’s Green Economy Transition approach.

The Bank’s investment in the bond builds on its strong commitment to support the development of capital markets in the Baltic region.

EBRD Director for EU Banks and Structured Finance in the Financial Institutions Group, Melis Ekmen Tabojer said: “The EBRD is happy to contribute to the successful placement of the first senior preferred bond issuance out of Latvia and support a long-standing partner bank, while also supporting the green economy transition in the country.”

CEO of Citadele bank, Johan Åkerblom commented: “Citadele appreciates EBRD’s support for the development of the Baltic capital markets, as well as being an anchor investor and sharing the success of our inaugural international debt issue”.

Citadele is the second largest bank in Latvia with a strategic focus on retail and SME banking in the Baltic countries. It provides a range of banking products as well as asset management, life insurance, pension and leasing and factoring products.

The bank also operates in Lithuania and Estonia, and has a subsidiary in Switzerland.

To date, the EBRD has invested a combined €2.7 billion in 295 projects in the Baltics, and in Latvia alone €804 million through 94 projects.