TGS Baltic advised the European Investment Bank (EIB) on the financing of energy efficiency projects

01.06.2019 TGS Baltic advised the European Investment Bank (EIB) on the financing of energy efficiency projects

TGS Baltic advised the European Investment Bank (EIB) on the financing of energy efficiency projects through funds Jessica I and Jessica II. The success of the pre-financing scheme employed for the financing of the renovation of multi-apartment buildings showed that the banks may be ready to get involved in the financing of this sector with their own funds. 

 

TGS Baltic focused on the development of financial products to finance the renovation of multi-apartment houses, which do not typically have access to usual banking products. The value of the deal is EUR 546 million. The mandate includes creating and implementing financing schemes, using EU structural funds and attracting private funding from banks.

The task of TGS Baltic has been to assess and develop the guarantee product, which could address the requirements of the banks. The main tasks of TGS Baltic team focused on the development of the leveraged fund scheme, agreeing the terms of it with the government, which will be providing the funds for the guarantee, obtaining approvals for the scheme from the EU Commission, the Bank of Lithuania and other local authorities, negotiating the agreement establishing the leveraged fund, as well as those with participating banks.

The firm continues its assistance in the set up and implementation of the leveraged fund. Currently, the EIB manages 2 funds in Lithuania, the size of JESSICA I is EUR 256 million, the size of JESSICA II is EUR 290 million. The pre-financing scheme, developed by TGS Baltic and the EIB, has proved to be attractive to banks and successful in attracting considerable contribution from the private sector. This innovative product has been awarded as the Service of the Year and the Legal Service of the Year in 2016 by the Lithuanian Business Confederation.

The European Investment Bank (EIB) is the only bank owned by and representing interests of the European Union Member States. The EIB works closely with other EU institutions to implement the EU policy. The EIB is the world’s largest multilateral borrower and lender.