EIB and Šiaulių bankas renew support for urban renewal in Lithuania

06.06.2016 EIB and Šiaulių bankas renew support for urban renewal in Lithuania

The European Investment Bank (EIB) and Šiaulių bankas have signed two new agreements to support the refurbishment and modernisation of multi-apartment buildings in Lithuania with an additional EUR 110 million under the Jessica II fund, EUR 70 million of which is contributed by Šiaulių bankas.

The “Jessica II” fund, managed by the EIB, supports energy efficiency modernisation of residential buildings under the Lithuanian government's “Multi-apartment buildings Modernisation (Renovation) Programme”. This is the second agreement with Šiaulių bankas as the selected financial intermediary under the 2014-2020 EU regulations for Decentralised Financial Instruments. Under this agreement Šiaulių bankas will disburse EUR 80 million in preferential loans to home owners. Half of this amount (i.e. EUR 40 million) will be made available from Šiaulių bankas’ own funds.

TGS Baltic has been advising the EIB on the “Jessica” programme implementation in Lithuania since 2009 and represented the client in negotiations with the Šiaulių bankas. Vilius Bernatonis, Partner at TGS Baltic, and Neringa Gražinytė, Associate Partner, advised the EIB on all matters in relation to this additional funding.

Housing renovation, which is one of the priorities of the Ministry of Environment of the Republic of Lithuania, has gained traction across the whole country. According to the Housing Energy Efficiency Agency, currently 784 renovation projects are undergoing works, for a combined worth of circa EUR 245 million. Most active in the renovation process are the regions of Ignalina, Druskininkai, Molėtai, Anykščiai, Jonava and Kelmė.

The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2015, the EIB provided loans in Lithuania totalling EUR 474 million, with the energy and transport sectors as two of the main beneficiaries.