COOP PANK and eeef collaborate in Estonia in financing energy efficiency and renewable energy projects

European Energy Efficiency Fund (eeef) is issuing long-term subordinated debt facility to Coop Pank in Estonia for the purpose of financing sustainable projects. In collaboration with eeef, Coop Pank will identify, evaluate and finance energy efficiency, renewable energy, and clean urban transport projects in Estonia. The financing will primarily be provided to public sector entities and private sector companies acting on behalf of the public sector, including energy services companies. Each project will result in at least 30% energy or CO₂ savings and will be EU Taxonomy aligned. In case of larger financing or risk sharing is needed, eeef may provide additional direct capital and finance projects jointly with Coop Pank.

Coop Pank is a local, Nasdaq Baltic listed bank with a highly focused and dynamic team. The Estonian partner was selected in recognition of the bank’s efforts in implementing responsible business practices, including implementing environmental and social aspects in its business operations. As part of the sustainability journey the bank joined Responsible Business Forum in 2020 and became member of the financial initiative of the United Nations Environment Program in 2022 and signed the principles of responsible banking bringing the bank’s business strategy in line with the goals of the UN sustainable development and the Paris climate agreement. eeef’s team is committed to assisting the bank in these endeavours based on its more than 10 years of experience in impact investing.

CFO of Coop Pank, Paavo Truu: “Cooperation with eeef is an important step in the decarbonization of the bank's loan portfolio. For two years, we have been thoroughly measuring the CO₂ footprint of both direct and indirect activities of Coop Pank and we know very precisely the CO₂ impact from across our different activity fields. It is clear that the largest environmental impact for banks comes from their lending activities, and therefore we consider it very important to reduce the CO₂ footprint of our loan portfolio, thereby contributing to Estonia’s energy independence and green goals.”

With this transaction eeef marks its entry into the Estonian market and completes its three Baltic State coverage. eeef is already participating in sustainable project financing in Lithuania through collaboration with VIPA (now merged with INVEGA) and in Latvia through collaboration with Signet Bank. The transaction will help to enhance energy savings, energy efficiency and foster renewable energy sources within Estonia and support objectives of the Estonian National Energy and Climate Plan.

 

European Energy Efficiency Fund (www.eeef.lu) is an Art. 9 and EU Taxonomy aligned fund dedicated solely to impact investing in EU. The fund invests in energy efficiency, small scale renewable energy, and e-Mobility projects, and finances Energy Services Companies throughout Europe. The Fund aims to provide financial support additional to the resources provided by the local financial sector or private investors, sharing market-based risks.

Coop Pank (www.cooppank.ee), based in the Estonian capital, is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking reached 180,300. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes.