TGS Baltic represented EIB in signing an operational agreement with Šiaulių bankas for establishment and management of EUR 275 million renovation fund. It is the first fund of this type in Europe, intended for performance of a public function

29.04.2022 TGS Baltic represented EIB in signing an operational agreement with Šiaulių bankas for establishment and management of EUR 275 million renovation fund. It is the first fund of this type in Europe, intended for performance of a public function

We represented the European Investment Bank (EIB), as the manager of the European Regional Development Fund (ERDF), in granting a loan of EUR 90 million together with the Government of Lithuania to Šiaulių bankas, intended for its new subsidiary SB modernizavimo fondas. This loan is partly composed of funds from the European Structural and Investment Fund (ESIF). EUR 275 million loans in total, were granted to SB modernizavimo fondas also by other top-profile investors: Council of Europe Development Bank (CEB), INVL Asset Management, Swedbank, Šiaulių bankas and Nordic Investment Bank (NIB).

The new fund is intended for private fund raising for renovations in Lithuania. The structure of this fund allows achieving great synergy by raising private capital in order to multiply public funds for financing renovation projects by up to five times.

Renovation of old multi-apartment buildings can lead to significant reduction of consumption of energy resources and in this way strengthen the energy independence of Lithuania, especially by reducing imports of energy resources from Russia. This initiative also adds to sustainable use of public funds, reduces residents’ heating bills, energy dependence of the country on fossil fuels and negative effect on climate.

SB modernizavimo fondas will finance renovation projects, upon the implementation of which heat savings would amount to at least 40%, resulting in at least energy class C of the renovated buildings. The fund has already started to operate and plans renovation of 600 old multi-apartment buildings, improving living conditions for 16,000 households.

The client has been represented by Vilius Bernatonis, Managing Partner, and Sebastian Okinczyc, Senior Associate at TGS Baltic. We represented EIB in negotiations for conclusion of the framework Operational Agreement with Šiaulių bankas (for a loan of EUR 90 million), the Ministry of Finance and the Ministry of Environment. 

More on: Europe’s Green-Building Retrofit Leader Is One of Its Smallest Countries (Bloomberg)