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Lithuanian private sector to benefit from EBRD syndicated loan
Lithuania’s largest bank, Vilniaus Bankas (VB), has gained access to international capital markets through a EUR 75 million syndicated loan jointly arranged by the European Bank for Reconstruction and Development (EBRD) and Bankgesellschaft Berlin AG. The financing comprises a five-year EUR 25 million A-loan for the EBRD’s own account and a three-year EUR 50 million B-loan syndicated to a partnership of commercial banks. It will allow VB to provide long-term financial support to many of Lithuania’s blue chip companies and a wide range of small and medium-sized enterprises (SMEs).
"The investment climate in the region is difficult right now, so putting together a highly successful and heavily over-subscribed syndication like this is a very positive sign. It demonstrates that investors are still interested in sound business opportunities in the region," said Lorenz Jorgensen, Head of Syndications at the EBRD. "This transaction further illustrates how a partnership between the EBRD and a group of commercial banks under the EBRD’s umbrella can provide sound financing solutions for borrowers in the region."
"The EBRD’s syndicated loan will help a key player in the Lithuanian economy to meet the increasing financing needs of its clients and to support the country’s growing private sector," said David Hexter, Deputy Vice President at the EBRD. "With a market share in excess of 30 per cent of the country’s corporate loans, Vilniaus Bankas is essential for the growth of the financial sector in Lithuania, and ultimately the country’s transition."
Hagen Sinodoru, Assistant Director at Bankgesellschaft Berlin AG, said, "This deal proves that despite the crisis in Russia, a syndicated loan for a borrower in central and eastern Europe can still be arranged very successfully when it has the right structure. In fact, after a successful syndication and over-subscription, the loan amount was increased from EUR 55 million to EUR 75 million." The loan was jointly arranged and underwritten by Bankgesellschaft Berlin AG (bookrunner), American Express Bank Ltd, Landesbank Schleswig Holstein Girozentrale and Hamburgische Landesbank.
Other banks participating in the loan include KBC N.V., LPR Landesbank Rheinland-Pfalz, Raiffeisen Zentralbank AG Österreich, the Sumitomo Bank Ltd, Banque et Caisse d’Epargne de l’Etat Luxembourg, Bayerische Landesbank Girozentrale, BRE Bank SA, Efibanca S.p.A and WGZ Bank.
With a network of 15 branches and 871 full-time staff, VB provides its 32,000 clients with a full range of wholesale commercial and investment banking services. Skandinaviska Enskilda Banken is VB’s largest shareholder, with 35.8 per cent of its capital.
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