The Tallinn office of Cobalt has advised Estonian energy group Alexela on its receipt of a EUR 37 million loan from Sihtasutus KredEx, a financing institution established by the Estonian Ministry of Economic Affairs and Communications. Ellex Raidla advised KredEx on the deal.
According to Cobalt, “the loan was granted by SA KredEx to Alexela Varahalduse AS, the holding company of the Alexela Group, pursuant to the decision of the Government of the Republic and in accordance with the State aid Temporary Framework of the European Commission within the context of the outbreak of COVID-19. The loan ... enables Alexela, among other things, to maintain more than 500 jobs in Kivioli Keemiatoostus, a company belonging to the Alexela group, which in turn means that the living conditions of more than 1500 persons, in terms of households, will be maintained by Kivioli Keemiatoostus as the biggest employer in Kivioli.”
“What makes us most happy is knowing that as an employer in the Luganuse municipality ... we’ll be able to maintain the living conditions of many households by maintaining the jobs of our employees,” commented Alexela Group CEO Andreas Laane. Laane added that Alexela paid “well above EUR 100 million of taxes to the state each year, and Kivioli Keemiatoostus alone paid almost EUR 10 million of various taxes to the state, and therefore EUR 37 million of loan money would be a reasonable amount for the state, as the state would retain its tax income, and in addition, the loan would be returned not later than in five years.”
Cobalt’s team included Partner Marina Kotkas, Senior Associate Mattias Tammeaid, and Assistant Lawyer Christine Magi.
Ellex Raidla's team included Partner Ermo Kosk, Counsels Toomas Kasesalu and Rain Raa, and Senior Associate Martin Maesalu.
