The state funded pension scheme pension investment plan ‘CBL Aktīvais Ieguldījumu plāns’ managed by ‘CBL Asset Management’ will invest EUR 4.5 million in the alternative investment fund ‘Merito Sustainable Energy Fund I’.
The alternative investment fund ‘Merito Sustainable Energy Fund I’ (Fund), managed by the investment company ‘Merito Partners’, is developing solar power plants in Latvia in collaboration with experts from the company ‘Saules Energy’. The Fund is the largest solar power plant operator in Latvia. In 2023, the Fund has successfully completed the construction of three solar plants in Zilupe, Brenguļi and Inčukalns with a total capacity of 12.9 MW. The Fund will build a total of eight solar power plants with a total capacity of 70 MW by the end of 2024. The Fund will invest a total of EUR 50 million in the development of the eight solar power plants. The equity funding has been committed by 60 private and institutional investors, while debt is provided by Latvian commercial banks.
“The concept behind the Merito fund aligns well with ‘CBL Asset Management’ overall philosophy in pension fund management. First, this provides us with another opportunity to invest in the Latvian economy, which is a challenging task given the relatively small and shallow local capital market. Second, this represents a commitment to environmentally friendly renewable energy and an investment in Latvia’s energy independence and security, which is vitally important at this moment. Third, the fund’s business plan and the active, motivated team give us reason to believe that our investment will yield financial benefit for CBL Active Pension Plan members,” explains Zigurds Vaikulis, Investment Director and Pension Plan Manager at CBL Asset Management.
Mikus Janvars, Co-founder and Managing Partner at Merito Partners, says, “We are pleased that this ambitious green infrastructure project, driven by Latvian investors, has earned the trust of CBL Asset Management. This project directly benefits Latvia, as we aim to strengthen our country’s energy independence using local capital. This will be achieved by constructing a total of eight solar power plants connected to the local distribution infrastructure. As a result, the generated solar electricity will be accessible to residents and companies in nearby areas. As the share of renewable energy increases and reaches sufficient levels, we anticipate gradual reduction in electricity costs over time.”
Merito Sustainable Energy FUND I, an alternative investment fund registered with the Bank of Latvia, is managed by Merito Partners, an investment company operating in Latvia and the surrounding region. It implements growth capital, sustainable energy and specialised real estate investment strategies on behalf of Latvian investors. Merito Management AIFM, 100% owned by Merito Partners, is an alternative investment fund manager registered with the Bank of Latvia.
About Citadele Group
Citadele’s mission is to modernise the financial sector and offer more opportunities to private individuals and businesses throughout the Baltics. In 2022, Citadele had 374,000 active customers in the Baltics and issued EUR 1.2 billion in new loans, with its total loan portfolio reaching EUR 2.9 billion, while total deposits reached EUR 3.9 billion.
Alongside classic banking services, Citadele offers its clients a range of services based on next-generation financial technology, including its modern app, contactless payments and instant payments. Citadele was the first in the Baltics to introduce opening an account with a selfie, payment rings and payments to mobile numbers for private customers. Meanwhile, businesses make active use of our remote account opening and the chance to accept payments with the Citadele Phone POS app and Klix universal e-commerce tool, as well as applying for financing to develop their business.
Citadele Bank is the Group’s parent company in Latvia, and its subsidiaries and branches operate in Latvia, Lithuania and Estonia.