Projects in Lithuania

Project Summary Documents

Project Summary Documents (PSDs) are disclosed for each project prior to Board consideration. They contain project descriptions, financial details, client information, environmental issues, tender guidelines, and contact details. PSDs for private sector projects are disclosed at least 30 days prior to Board consideration and for state sector projects, at least 60 days.

Project Summary Documents 

Signed projects

Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.

Signed projects  (0.1Mb) 

Case studies

Svyturys

The EBRD acquired almost a 20 per cent stake in Svyturys in 1999, together with Carlsberg, which through BBH is now the majority shareholder of the company. As part of the ongoing consolidation of the industry, Svyturys merged with another major Lithuanian brewery and brand name - Utenos - in November 2001 with the EBRD’s stake being diluted to about 11%. The brewery group is now the largest in the country, with around 40 per cent of the domestic beer market.

This transaction has allowed entrance of a major international company into the Lithuanian food processing sector at a crucial time, when an industry dominated by domestic producers was entering a phase of maturing market and consolidation. The strategic investor has continued the modernisation of the brewery, introduced new products and integrated activities of Svyturys with Utenos. The added financial, managerial and marketing resources have helped Svyturys to strengthen its leading brand name and market position at a time of intensifying competition and rapid changes in consumer preferences, thus preserving the role of an important domestic producer.

Svyturys has demonstrated that a successful competition strategy need not only be price driven, but can focus instead on product quality, an efficient distribution system and effective marketing and promotion. This example of how a company can maintain its profitability and market share, even at a time of intensive pricing pressure, is particularly valuable for other sectors. Svyturys Utenos is one of the most visible corporates in Lithuania and many other industries where domestic producers have to compete in a fairly limited market can learn important lessons from its experience.

Lietuvos Zemes Ukio Bankas

The Agricultural Bank of Lithuania (LZUB) was the last major commercial bank in the country still to be majority-owned by the state. The government's aim was to improve the bank's operations and attract private strategic investors.

The EBRD has supported LZUB via several instruments at a pre-privatisation stage, including a subordinated convertible loan to supplement Tier 2 equity and a syndicated loan to replenish LZUB's long-term funding base. The EBRD has also acquired just over 11 per cent of LZUB shares and a seat on the bank's Supervisory Board. The facilities and support provided by the EBRD have helped LZUB to improve its operations, introduce new products, increase the level of service and maintain its position in an increasingly competitive market in Lithuania.

It was particularly important to maintain the activity level of LZUB due to its position as one of the leading financiers of medium-sized enterprises in the agribusiness and food processing sectors. Thanks to its wide branch network and established relationships with a large number of clients outside cities, LZUB performs an important role in providing accessible financial services and resources for the development of business in smaller towns and rural areas. The privatisation efforts have also been finalised successfully with Norddeutsche Landesbank Girozentrale signing the agreement on acquisition of the state-owned shares in February 2002.