Rīgas ūdens SIA, Latvia’s largest water utility company, has successfully issued EUR 40 million in five-year European Green Bonds with a fixed annual interest rate of 4.839%. The issuance completes the company’s EUR 60 million bond programme launched in 2025.
The proceeds will be used to develop and modernise Riga’s water and wastewater infrastructure. Approximately 55% of the funds will be allocated to the renovation of sewerage networks, 42% to completing the expansion of the methane tank facilities at the Daugavgrīva biological wastewater treatment plant, and the remaining funds to improving energy efficiency and upgrading IT monitoring systems. These investments form part of the company’s EUR 235 million investment programme for 2025–2028.
Krišjānis Krūmiņš, Chairman of the Management Board of Rīgas ūdens, commented: “We are a financially stable company with a clear long-term vision and a well-defined investment strategy. These strengths enable us to access the capital markets successfully and secure financing on competitive terms. However, raising financing is not an end in itself – it is a means of modernising Riga’s water and wastewater infrastructure in a timely manner, reducing future costs and ensuring reliable services for residents for decades to come.”
The bond issuance was arranged by Signet Bank AS. The bonds were offered exclusively to institutional investors, including banks, pension funds, insurance companies and investment fund managers in Baltic and Nordic countries. The new bonds are expected to be listed on the Nasdaq Riga Baltic Regulated Market Bond List.
Legal assistance in connection with Rīgas ūdens green bond issuance was provided by the COBALT Banking and Finance team, including Partner Edgars Lodziņš, Senior Associate Krišjānis Bušs, and Junior Associate Kate Birzgale.
Rīgas ūdens is the first municipally owned company in Latvia to raise financing through the capital markets and the first company in Northern Europe to issue bonds in accordance with the European Green Bond Standard. COBALT also provided legal advice on the company’s first bond issuance in June 2025, which raised EUR 20 million.
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