Regarding AB Ignitis Grupė loan to UAB Ignitis Renewables
AB Ignitis Grupė (hereinafter – Ignitis Grupė or the Company) informs that on 27 November 2020 the Supervisory Board of the Company approved the Agreement between Ignitis Grupė and UAB Ignitis Renewables to give a loan of up to EUR 83m (hereinafter – the loan).
The Audit Committee of the Company's Supervisory Board, after analyzed the information provided by the Company on the issue under consideration, submitted an opinion to the Company regarding the conclusion of this Loan Agreement. In the opinion of the Audit Committee, there is no reason to think that the proposed Loan Agreement would be concluded not according to market terms or would be unfair to the shareholders of the Company who are not parties to the proposed transaction.
The loan will be allocated from the green bond funds raised by the Company. The stated date for repayment – 10 July 2028. The loan can be repaid before the deadline of the loan.
The loan will secure financing for the development of the wind farm project in Mažeikiai region (hereinafter – Mažeikiai wind farm) developed by UAB VVP Investment, which is controlled by UAB Ignitis Renewables.
Mažeikiai wind farm will comprise 14 wind turbines, which will have a total operational capacity of approximately 63 MW. Construction is estimated to be completed by the end of 2022.
The Agreement will be signed in the near future, the Company will not inform about its signing in a separate notice about material event.
Artūras Ketlerius, Head of Public Relations
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