We advised Sunly, a renewable energy producer, on securing a EUR 62 million loan from the European Investment Bank (EIB) and local commercial banks SEB Pank and Luminor Bank. This funding will be used to build and operate a solar park, accelerating the Baltic region’s transition to green energy and strengthening electricity independence. The EIB is contributing EUR 31 million, while the remaining EUR 31 million is covered by SEB and Luminor.
EIB’s first merchant renewable energy loan in the Baltics
“The EIB’s financing will support Sunly in developing the Risti solar park and its grid connection, which will include battery storage and wind power at the same location,” said Priit Lepasepp, CEO of Sunly.
The project marks the EIB’s first fully merchant renewable energy financing operation in the Baltic market, for which revenues will rely solely on electricity market sales.
“This investment shows our commitment to supporting renewable-energy projects in the Baltic region,” said EIB Vice-President Thomas Östros. “By increasing solar energy capacity in Estonia and connecting the Baltic states to the continental European grid, we improve energy security and resilience, reduce emissions and stimulate economic growth.”
As Indrek Julge, head of corporate banking at Luminor Estonia, pointed out, this will provide the largest renewable electricity production capacity in Estonia to date, to be built at market conditions and fully supported by private and loan funds, without state subsidies or other support.
Our services and client team
We advised Sunly as a local counsel, with CMS acting as the lead counsel, in providing full legal support, including conducting due diligence, drafting and reviewing agreements, managing documentation, and completing all pre-closing and closing actions.
The main legal challenges faced included navigating complex Estonian legal security agreements, ensuring compliance with local regulations, and coordinating multiple stakeholders’ interests.
Our LDD team was led by partner Mirell Prosa and our financing team was led by senior associate Kamilla Alma Vilderson, supported by counsel Jane Eespõld, senior associates Britta Retel, Kätlin Sehver and Mirjam Vichmann, associates Vladislav Leiri, Kadri Puu and Kevin Piho and assistant lawyer Karl Oskar Pungas.
