Nordic Investment Bank (NIB) and Council of Europe Development Bank (CEB) have each entered into loan agreements with the SB Modernisation Fund to finance a state-wide housing renovation programme to improve the energy efficiency of multi-family apartment buildings in Lithuania.
The long-term loans support the newly established EUR 275 million fund used by homeowners to modernise their properties. The programme envisages the renovation of 600 old apartment buildings, benefiting around 16,000 households. It aims to improve living conditions while maintaining cost neutrality through reduced energy costs for end users.
The fund is a subsidiary of Šiaulių Bankas, which is the largest commercial bank with Lithuanian capital and the country’s leading renovation financier. The SB Modernisation Fund is supported by a state grant and other financial mechanisms from Lithuania, as well as European structural and investment funds (ESIF). It has also received loans from the European Investment Bank, INVL Asset Management, Swedbank and Šiaulių Bankas. The overall estimated funding for this project is EUR 275 million and the lenders were pooled into one investment platform.
Both NIB and CEB was advised by Mannheimer Swartling.