The European Investment Bank (EIB) has committed to invest €20m in the €100m BaltCap Infrastructure Fund, which finances infrastructure development, particularly renewables and energy efficiency, in Lithuania, Latvia and Estonia.
The fund was launched by BaltCap, the largest private equity and venture capital investor in the region.
It has a duration of 20 years and is expected to mobilise €480m worth of infrastructure investment.
Other investors include the Nordic Environment Finance Corp, the pension funds of SEB, Swedbank and LHV, and Swedbank Life Insurance.
The EIB support is backed by the European Fund for Strategic Investments (EFSI), the central pillar of the European Commission’s Investment Plan for Europe.
EIB vice-president Ambroise Fayolle said: “Mobilising private financing for strategic investments is the main goal of EFSI, and we therefore welcome the cooperation with the BaltCap Infrastructure Fund as it is the first infrastructure fund in the Baltics with the goal of catalysing private investors to finance infrastructure projects.”
Image: EIB
Europe backs Baltic green fund
EIB invests €20m to help develop projects in Lithuania, Latvia and Estonia
By EBS