We advised Šiaulių bankas on the establishment of the EUR 275 million SB Modernisation Fund and signing agreements with the European Investment Bank, the Council of Europe Development Bank, INVL Asset Management, Swedbank and Nordic Investment Bank (NIB) on the financing and management of the fund. The fund administered by Šiaulių Bankas will consist not only of investors’ funds, but also of funds from the Lithuanian state and the European Structural and Investment Fund (ESIF).
Unique financial instrument
It is planned that the funds will be utilised to renovate 600 old multi-apartment buildings improving the living conditions of 16,000 households. The project is expected to save 200 gigawatt-hours (GWh) of heat and about 50,000 tonnes of carbon dioxide (CO2) annually.
The new fund is a unique financial instrument designed to attract private funding for renovation not only in Lithuania but also throughout Europe. This exceptional deal included negotiations with the creditors of multiple different types and pooled them into one investment platform, which falls within the scope of applicability of the Securitisation Regulation (EU) 2017/2402.
Our services and team
Our team consisted of partners Tomas Kontautas, Mantas Petkevičius, Indrė Ščeponienė, and senior associates Dalia Augaitė, Agnė Sovaitė, Vitalija Impolevičienė and Rasa Mikutienė. We advised Šiaulių bankas on the structuring of financing model, preparing and negotiating the financing agreements with the investors, the fund management agreements, preparing the collateral agreements, and advised regarding establishment of the fund. This is an exceptional agreement and the first of its kind in Europe.