03.12.2024
From the end of May, LHV Pank, with the support of the European Investment Fund (EIF), has been offering apartment associations favourable loans for the renovation of apartment buildings in order to improve the energy class of the building and reduce energy consumption. Over a period of half a year, 44 apartment buildings across Estonia have undertaken this challenge with the support of LHV.
The largest number of renovation projects being supported by LHV are underway in Harju and Pärnu counties, with eight apartment buildings each, while five apartment buildings are being renovated in Lääne-Viru, Viljandi, and Võru counties, and four apartment buildings in Tartu and Hiiu counties.
According to Marko Kiisa, the Head of Corporate Financing at LHV, interest in the more affordable loan offer is high among apartment associations, as many more associations have been contacted than just those with whom an agreement has already been concluded. ‘Based on the projects so far, it can be said that the average apartment association that has taken out a loan has 19 apartments, with a renovation loan of EUR 482,000 taken out for a period of 28 years. The loan can be combined with other forms of financing, and the flexible loan period offered by LHV makes the monthly payment per apartment much more affordable,’ Kiisa noted.
‘This is an investment in energy saving, as in the case of a typical full renovation, the new more favourable loan margin will provide monthly savings of almost EUR 8 per apartment. It should also not be forgotten that in addition to energy efficiency, a better quality of life is achieved: better air inside the apartment, a more stable temperature, elimination of possible mould and damp, and a visually beautiful and tidy building. All of this together increases the value of apartments,’ Kiisa said.
Almost three quarters of Estonia’s population live in apartment buildings, and nearly half live in buildings that are in need of renovation. In apartment buildings, as a rule, significant energy savings are brought about by a full renovation where, in addition to insulating the building, the ventilation system is also renovated in its entirety.
To improve the energy class or reduce the energy consumption of apartment buildings, LHV offers a loan with an interest rate of 1.29% + 6 months’ Euribor.
In addition to apartment associations, LHV Pank offers a loan to small and medium-sized enterprises to finance sustainable activities, such as reducing industrial energy consumption, renovating commercial buildings, as well as investments to create renewable energy production capacities or storage solutions, with affordable conditions within the framework of the EIF sub-programme ‘Sustainable Loan’.
Under the same programme, leasing is also offered to private clients for the purchase of electric vehicles and enterprises for the purchase of both electric and hybrid vehicles. The offer extends to vehicles that are up to two years old and purchased for normal use.
Find out more: https://www.lhv.ee/en/apartment-association-loan
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,200 people. As at the end of October, LHV’s banking services are being used by 448,000 clients, the pension funds managed by LHV have 116,000 active clients, and LHV Kindlustus protects a total of 169,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.
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