Šiaulių bankas selected by the European Investment Bank to establish a EUR 200 million renovation fund

Šiaulių Bankas AB, company code 112025254, domicile address Tilžės st. 149, Šiauliai, Lithuania.

Šiaulių bankas (the Bank) has been selected by the European Investment Bank (the EIB) as a Financial Intermediary to implement a Financial Instrument in Lithuania for the establishment of the multi-apartment building renovation fund (the Fund) in Lithuania. Together with the EIB, Siauliu Bankas aims to achieve a Fund size of up to EUR 200 million, of which up to EUR 150 million from senior and junior debt investors supported by EUR 50 million of European Structural and Investment Funds (ESIF) & equity investors. The Fund structure will allow to attract significant private investors’ funds for energy efficiency projects - modernisation of multi-apartment buildings -, which is now mostly financed by public funds.

The Bank is responsible for the setup of the Fund under the Financial Instrument and it has to provide the foreseen equity to the Fund in accordance with the Call for Expression of Interest for the Financial Instrument. The Bank will have to conclude negotiations with private investors as senior and junior debt providers as well as with equity investors in the Fund to obtain the resources for the disbursement of loans for the modernisation of multi-apartment buildings.

The Bank is currently in the process of negotiations of an Operational Agreement with the EIB and of agreements with senior and junior debt providers, equity investors, with the aim of reaching final agreements within Q3 2020 and starting issue modernisation loans by the end of the year.

The Fund will be able to finance the renovation and modernisation of up to 800 multi-apartment buildings in Lithuania.

The Bank is a key player and renovation market leader (60% market share) with more than 9-year participation in modernisation of multi-apartment buildings programs and cooperation with the EIB. Modernisation loans signed are in amount of EUR 520 million (o/w EUR 280 million are own funds of the Bank). The Bank has financed up to 2000 multi-apartment buildings.

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Monika Rožytė, ,