Latvian businesses to get €30 million green-financing boost under EIF deal with BluOr Bank

• EIF backs Latvian lender BluOr Bank to generate up to €30 million for green upgrades by companies in Latvia.
• Financing to go to small and mid-sized Latvian businesses pursuing sustainable investments.
• Backed by InvestEU programme, operation highlights EU commitment to environmentally friendly growth.

Riga/Luxembourg: A range of companies in Latvia will be eligible for financing for green initiatives as a result of an agreement between the European Investment Fund (EIF) and Latvian lender BluOr Bank. Under the agreement, the EIF is providing guarantees that will enable BluOr Bank to lend as much as €30 million to Latvian small and medium-sized enterprises (SMEs) pursuing projects to fight climate change and advance sustainable business practices.  

BluOr Bank will offer the loans to SMEs and small midcaps in Latvia on advantageous terms including relatively lower interest rates, and companies that do not have sufficient collateral will find it easier to access financing. The support by the EIF, which is part of the European Investment Bank (EIB) Group, comes through the European Union’s InvestEU programme.  

"We are thrilled to be engaging in a new partnership with BluOr Bank to generate financing on more favourable terms for Latvian businesses,” said EIF Chief Executive Marjut Falkstedt. “This agreement will support local companies as they navigate the green transition and invest in a more sustainable business model, promoting environmentally friendly development and economic resilience in a changing world.”

Under the operation, BluOr Bank will direct loans to Latvian SMEs with green goals such as upgrading manufacturing to meet EU environmental standards, reducing energy consumption through the use of new technologies and deploying renewable power such as solar and wind.

"Our collaboration with the European Investment Fund enables us to offer Latvian entrepreneurs significantly more accessible financing for sustainable development projects," said Dmitrijs Latisevs, CEO of BluOr Bank. "The EIF guarantees allow us to greatly expand access to loans for companies aiming to implement green transition initiatives — from improving energy efficiency to deploying renewable energy solutions. We believe this support will help local businesses not only to grow, but also to become more resilient in the face of future challenges."

Background information

About the EIF

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more. 

About InvestEU programme

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment. 

About BluOr Bank

BluOr Bank AS is a privately owned commercial bank, one of the six largest banks operating in Latvia, and is among the five systemically important financial institutions in the country. The Bank was established in 2001. BluOr Bank AS provides a full range of banking services: daily banking services for corporate and individuals, loans to small and medium-sized companies, asset management and brokerage services. According to the Bank’s strategy, the main business segment is corporate banking with a focus on small and medium-sized companies and corporate lending.

Press contacts

EIB Group

Kristiina Randmaa

M. +352 4379 72894, e-mail:  k.randmaa@ext.eib.org
Website: www.eif.org — press@eib.org

BluOr Bank

Ingrīda Šmite, Head of Corporate Communication and Marketing Department

Ingrida.smite@bluorbank.lv