Signet Bank has granted EUR 1 million loan to the Latvian investment company Merito Partners (Merito). The funding will be used for development of a green infrastructure project by Merito, involving the construction of a 2.7 MW solar power plant near Zilupe, in Ludza district.
The loan from Signet Bank has been used for the construction of Zilupes solar power plant in Zaļesje parish of Ludza Municipality, near the border of Zilupe. The power plant will consist of 5,000 solar panels with total capacity of 2.7 MW. It will provide green electricity to at least 1,300 households in Zilupe and its surrounding area, and any excess electricity generated will be available to residents of Ludza and other Latvian districts.
Roberts Idelsons, Chairman of the Board of Signet Bank, explains, “One of Signet Bank’s focus areas is providing funding for the growth and development of Latvian companies. The loan to Merito is an investment in green infrastructure, which will not only contribute to our country’s energy independence, but also provide environmentally friendly electricity to the residents and businesses of Latgale region in the near future. It is a win-win opportunity to take another step towards the transformation of the Latvian economy.”
Zilupe solar power plant is the first of nine solar power plants in the ambitious Latvian green electricity project implemented by Merito Sustainable Energy FUND I, which will strengthen our country’s energy independence. It is planned that at least seven power plants with a total capacity of 55 MW will be operational in various regions of Latvia by the end of this year with additional two scheduled for 2024. The new solar power plants are expected to produce at least 70,000 MWh of electricity annually.
“We are grateful to Signet Bank for their support and trust in relation to initiative of local entrepreneurs and investors, which will result in providing green energy to over 35,000 households throughout Latvia in the next two years. As a result of Merito investment along with co-financing from Signet Bank and other banks, a total of EUR 50 million will be invested in the Latvian economy,” says Mikus Janvars, Managing Partner and co-founder at Merito Partners.
Currently over 45 investors have invested in Merito Sustainable Energy FUND I, with new investors joining the fund every month.
About Signet Bank
Signet Bank was founded in 1991 and is one of Latvia’s first independent banks. The bank’s strategy focuses on providing financing and capital management services to local entrepreneurs and their businesses. Since the start of 2021, Signet Bank has provided customers with almost EUR 500 million of financing in the form of loans and bonds. Signet Bank’s shareholders are nine Latvian and international private investors, of whom the biggest is Signet Acquisition III (25%), whose sole shareholder is US investor Aleksandrs Solovejs; AS RIT Group (19.50 %), a Latvian company owned by the Rapoport family, and SIA Reglink (15.93 %), founded by banker Irīna Pīgozne.