Continuing preparations for the next phase of its investment programme, SIA Rīgas ūdens has signed an agreement with the Nordic Investment Bank (NIB) providing access to a loan facility of up to EUR 50 million and has initiated the extension of its bond programme. Through these steps, the Company further strengthens its diversified funding structure to successfully implement its EUR 235 million investment programme for the development of wastewater treatment and drinking water infrastructure in Riga.
The Company’s 2025–2028 investment programme aims to enhance the safety and quality of its services, as well as to reduce water losses. The total programme cost for wastewater treatment and drinking water infrastructure development amounts to EUR 235 million. The programme includes the construction and replacement of drinking water and wastewater pipelines, the modernisation and capacity expansion of wastewater treatment facilities, as well as the digitalisation of water management systems to improve metering, operational management and long-term planning.
To ensure successful implementation and mitigate financing risks, the Company applies a diversified financing structure, combining capital market instruments with funding from international financial institutions.
Agnese Ozolkāja, Member of the Management Board of SIA Rīgas ūdens: “Our objective is to be a reliable and transparent partner for every investor. We therefore deliberately structure our financing model so that capital market instruments, including green bonds, play a significant role alongside funding from international financial institutions. This approach enables us to attract long-term investments and optimise financing costs, while consistently advancing our ambitious and large-scale water infrastructure development programme, the benefits of which will be felt by every resident of Riga.”
Since 2024, the Company has held an A3 credit rating from Moody’s, confirming its financial stability and enabling access to financing on competitive terms.
This rating, together with the Company’s preparedness to issue bonds in accordance with the new European Green Bond (EuGB) Standard, enabled SIA Rīgas ūdens in 2025 to successfully debut in the capital markets, becoming the first company in Northern Europe to issue bonds under the new standard.
In its debut European Green Bond issuance, the Company raised EUR 20 million, with investor demand significantly exceeding supply and reaching 228% of the issue size, demonstrating strong confidence in the Company’s strategy and development direction.
As the bond programme of up to EUR 60 million is set to expire in May 2026, and considering the continued interest from investors, the Company has initiated a 12-month extension of the programme to ensure full utilisation of limit.
Edmunds Antufjevs, Head of Investment Banking at AS Signet Bank: “Rīgas ūdens has demonstrated its ability to attract interest from local banks, international financial institutions and bond investors alike, raising financing gradually and allocating it prudently to the implementation of its investment programme.”
In parallel, to finance the investment programme, the Company is also utilising resources from international financial institutions — it has already signed a EUR 70 million loan agreement with the European Investment Bank and has recently signed an agreement with NIB providing access to a loan facility of up to EUR 50 million.
Kaspars Pīlādzis, Senior Banker and Country Lead for Latvia at NIB: “Investing in modern water infrastructure is fundamental for both environmental sustainability and urban resilience. This will reduce water losses and improve treatment facilities, ensuring that Riga’s residents continue to receive safe and reliable water services in the decades to come .”
These financing solutions provide a stable foundation for implementing the investment programme within the planned timeframe, enabling the timely launch and execution of infrastructure projects that will significantly improve the safety and quality of water management services in Riga.
As previously reported, SIA Rīgas ūdens has commenced the expansion of the sludge digestion tank park at the Daugavgrīva Wastewater Treatment Plant, continues projects aimed at increasing wastewater treatment capacity, and is progressively renewing water supply and sewerage networks across various neighbourhoods of Riga. At the same time, the Company is implementing the rollout of a remote water consumption data reading (telemetry) system and other socially significant development initiatives, improving service quality, customer convenience and supporting sustainable and efficient development of the water sector.
SIA Rīgas ūdens is the largest water utility company in Latvia, providing water abstraction, treatment, and supply, as well as wastewater collection and treatment services in Riga and the surrounding area. The company’s priorities are delivering high-quality services, developing infrastructure, and ensuring sustainable use of resources. “Rīgas ūdens” is the first municipal company in Latvia to secure financing through the capital market and the first company in Northern Europe to issue bonds in accordance with the European Green Bond (EuGB) Standard.
NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.