LHV makes renovating apartment buildings and buying electric cars more affordable than ever before


Cooperation with the European Investment Fund allows LHV Pank to offer companies and apartment associations much more favourable loans for energy efficiency investments, as well as leasing of environmentally friendly cars on favourable terms.

LHV Pank has signed a cooperation agreement with the European Investment Fund (EIF), which will allow LHV to offer investment loans to small and medium-sized enterprises, loans for renovation projects in apartment associations, and leasing to private clients for the purchase of electric vehicles and to companies for the purchase of both electric and hybrid vehicles under the ‘Sustainable Loan’ sub-programme of the EIF.

Estonian apartment buildings are in great need of renovation. Almost three quarters of Estonia’s population live in apartment buildings, and nearly half live in buildings that are in need of renovation. According to Marko Kiisa, the Head of SME Financing at LHV, apartment associations are already demonstrating a great need for renovation.

‘In this way, we hope to give a new impetus to encourage as many apartment associations as possible to act now. There are few rational reasons to delay improving the living environment for residents while at the same time significantly reducing energy consumption. The low margin on the LHV loan and the 30-year period will help make renovation affordable for residents,’ Kiisa said.

To improve the energy class or reduce the energy consumption of apartment buildings, LHV now offers a loan with an interest rate of 1.29% + 6 months’ Euribor. For example, for a typical full renovation, the new more favourable loan-to-value ratio will save around EUR 8 per apartment per month. Kiisa adds that the cost of renovation is often only compared to the energy savings that can be achieved. However, it should not be forgotten that at the same time, 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 house.

LHV offers an investment loan for SMEs at a favourable interest rate of 1.49% + 6 months’ Euribor in order to finance sustainable activities, such as investments in renewable energy solutions, the construction of renewable energy capacity, energy storage or activities to reduce energy bills. Shorter energy efficiency and automation investments in lighting, heating, and ventilation solutions have paid off in 3–3.5 years. The feasibility period for a renewable energy project for your own use is 6 years.

Marko Kiisa says that going green is no longer just about putting a few solar panels on the roof. ‘A new ventilation system, better lighting, an investment in building automation, or simply replacing a heating solution with a more efficient one can bring huge energy savings. Loans for all these sustainable activities are now available on much more favourable terms. Most certainly, also for small-scale renewable energy production and storage, which is becoming a new trend,’ Kiisa said.

In addition, cooperation with the EIF includes car leasing for the purchase of electric and hybrid vehicles. Erki Link, the Head of Leasing Department at LHV, said that while electric cars have so far been the choice of the wealthy, more favourable conditions for the purchase of second-hand electric cars could make them more popular for everyone.

‘We see that people in Estonia are increasingly open to buying electric or hybrid vehicles. The selection of electric vehicles has increased significantly in recent years and there is already a considerable range of second-hand electric vehicles available on the aftermarket at reasonable prices. Our ambition is to make electric vehicles more accessible to everyone by offering more favourable financing conditions,’ Link commented.

The 1.49% + 6 months’ Euribor leasing offer is valid for private individuals and companies for the purchase of full-electric vehicles and for companies for the purchase of hybrid vehicles with CO2-emissions up to 50 g/km. The offer extends to vehicles up to two years old purchased for normal use.

LHV offers favourable loans to improve sustainability under an agreement with the European Investment Fund, a unit of the European Investment Bank (EIB). The cooperation has been concluded under the new initiative InvestEU as part of the ‘Sustainable Loan’ sub-programme. The cooperation between LHV and the EIF has already been going on for 8 years and the microloan programme has financed investments and activities of 1,915 Estonian companies.

LHV Group is the largest domestic financial group and capital provider in Estonia. The LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs over 1,100 people. As at the end of April, LHV’s banking services are being used by 432,000 clients, the pension funds managed by LHV have 120,000 active clients, and LHV Kindlustus protects a total of 167,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

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