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CEB and the City of Tallinn sign €100 million loan for inclusive and sustainable urban development
11 June 2026
PARIS/TALLINN – The Council of Europe Development Bank (CEB) and the City of Tallinn have signed a €100 million loan agreement to support the implementation of the city’s strategic development plan “Tallinn 2035”, aimed at enhancing quality of life, social inclusion and environmental sustainability in the Estonian capital.
The loan will co-finance priority investments under Tallinn’s 2025–2029 capital investment programme, focusing on modernising education facilities, improving social care and social housing infrastructure, and regenerating public spaces and sustainable mobility networks.
With around 456 000 residents, Tallinn is home to roughly one-third of Estonia’s population and continues to attract both domestic and international migration. As the city expands, it faces growing pressure on public infrastructure, mobility systems and access to high-quality services across districts.
The CEB loan will help the city address these challenges by financing the construction, reconstruction and modernisation of schools, kindergartens and specialised education facilities. It will also fund upgrades to social care and social housing infrastructure for vulnerable groups, alongside improvements to streets, pedestrian and cycling networks, green spaces and public areas.
“Long-term financial stability remains a key priority for Tallinn. This loan agreement will support the financing of essential investments in education and infrastructure. Our investment plans are designed to ensure that the needs of residents and the city’s development goals are advanced in a manner consistent with our fiscal objectives,” said Peeter Raudsepp, Mayor of Tallinn.
“This agreement opens a new chapter in our partnership with the City of Tallinn,” said Tomáš Boček, Vice-Governor at the CEB. “It underscores our strong commitment to investing in social infrastructure and services that enhance quality of life, foster inclusion and drive sustainable growth at the local level. We are proud to support Tallinn’s inspiring ambition to become a ‘green world city’, building high-quality urban spaces, accessible public services, sustainable mobility, and resilient infrastructure for its citizens.”
The loan operation reflects the CEB’s commitment to supporting cities and regions in addressing social and environmental challenges, ensuring that urban growth translates into better opportunities and services for all residents.
The Council of Europe Development Bank (CEB) is a multilateral development bank with an exclusively social mandate from its 43 member countries. The CEB finances investment projects and provides technical assistance in social sectors such as education, health and affordable housing, while focusing on the needs of vulnerable people, as well as on the social dimensions of climate change and the environment. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. The CEB, which has a triple-A credit rating, funds itself through international capital markets. In addition, the CEB receives funds from donors to complement its activities.