Nordic Investment Bank grants Caruna a loan for projects weatherproofing the electricity network
Caruna has agreed a loan of MEUR 150 with the Nordic Investment Bank to finance the company's operations. The loan allows Caruna to carry out the planned extensive electricity network improvement projects to fulfil obligations of the Electricity Market Act by 2029.
The loan is granted by the Nordic Investment Bank (NIB). NIB’s mission, given by the Bank’s owners, Nordic and Baltic countries, is to improve the productivity and benefit the environment of the region. NIB’s major impact comes from its long-term lending to projects, and all projects considered for financing are viewed from a sustainability perspective.
The loan is intended for network improvement projects aiming to strengthen the reliability of Caruna's electricity supply mainly by underground cabling of networks. In addition, the extended electricity network makes decentralised small-scale production of electricity and the charging of electric cars possible. In the meantime, the increased automatisation of the network speeds up the process to resume electricity supply to customers after a power cut.
NIB monitors the progress of Caruna's project in accordance with the terms of the loan.
”The loan from the NIB enables us to realise our long-term plans and to improve the reliability of our electricity distribution to customers. We have committed to fulfilling our statutory obligations by 2029. This means that by that date, we must be able to resume the supply of electricity to our customers within six hours in urban areas and within 36 hours in rural areas,” said Jyrki Tammivuori, Caruna's CFO and Deputy CEO.
The loan period is 15 years. The final interest rate will be determined at the time the loan is drawn down.
Standard & Poor’s has assigned Caruna a long-term corporate credit rating of BBB+ with a stable outlook.