Šiaulių bankas to invest additional €60 million to finance the renovation of multi-apartment buildings in Lithuania

On 20 December, 2024, Šiaulių bankas AB and the European Investment Bank (EIB) signed amendments to the Pre-financing and Contingent loan agreements concluded in 2016 to increase the Bank's investment by €60 million – up to €255 million from €195 million – to finance the modernization programme of multi-apartment buildings in Lithuania.

"The multi-apartment building modernisation fund under Bank’s administration has signed financing contracts for almost €200 million this year alone. The demand for renovation projects is gaining pace and we have committed to increase Šiaulių Bankas’ investments in renovation financing by €60 million after discussions with the Ministry of Environment of Lithuania and the EIB. This way we continue to contribute to a more sustainable and country and wellbeing," says Vytautas Sinius, CEO of Šiaulių Bankas.

Šiaulių Bankas has been involved in the financing market for the modernization of multi-apartment buildings in Lithuania for more than 12 years. During this period, the Bank and its partners have financed the renovation of more than 3,000 projects total loan worth exceeding €1.2 billion.

"The Ministry of the Environment appreciates the cooperation with Šiaulių bankas, the financial intermediary chosen by the EIB, which, recognising the importance of renovation, has made it possible to finance the long-standing modernisation of multi-apartment buildings. The additional funding will ensure the continuity of the loan funds created with EU funds and a smooth transition to new financial instruments. I hope that these additional funds will accelerate the implementation of renovation projects," said Povilas Poderskis, Minister of the Environment.

"This collaboration between Šiaulių bankas and EIB represents another significant step in strengthening our long-term partnership in the housing sector. We are pleased to support this initiative at a time when financing for renovation and energy efficiency is most needed. By contributing to the Government's goals in this critical sector, we are helping to drive sustainable development and support the creation of greener, more resilient homes, while advancing broader climate objectives," said Junona Bumelytė, EIB Fund and Structuring Officer.

Šiaulių Bankas launched the €200 million SB Modernisation Fund 2, financed by Šiaulių bankas itself, the Government, with the EIB as fund manager, as well as Swedbank, the European Bank for Reconstruction and Development (EBRD), and pension funds managed by the Šiaulių bankas Group this year. This fund has already signed financing agreements for almost all allocated amount to renovate up to 300 multi-apartment buildings across Lithuania.

The aim is to renovate most of the multi-apartment buildings in Lithuania by 2050. Two thirds of these buildings are currently energy class D and below. Modernized buildings save energy while improving living conditions and increasing value.

Additional information:

Tomas Varenbergas

Head of Investment Management Division