Project description
and objectives:
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The proposed project will give Šiaulių Bankas (“SB”) access for the first time
to the international syndicated debt market. The loan will improve the bank’s
asset-liability maturity structure and diversify its funding base enabling SB
to expand its lending activity and implement its business plan. The loan funds
will be used to provide medium term loans to SB’s private sector corporate
customers, which are mostly SMEs.
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Transition impact:
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The proposed project will have a positive impact on the Lithuanian economy by
supporting the development and expansion of a regionally strong bank that is
focused on servicing SMEs, and by providing better access to medium-term
financing for local companies. With domestic credit to private sector share of
GDP at 19.9%, the country’s banking sector intermediation level is lower than
the Central European average (31.8%).
The proposed project will also increase financial intermediation of the
banking sector of Lithuania, especially in the regions outside the capital
city, which form the main geographical business area of SB. In addition, the
project will serve as an introduction of SB to international syndicated debt
markets paving the way for the bank’s raising term funding independently in
the future.
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The client:
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SB was established in 1992 as a regional bank based in Lithuania’s forth
largest town of Šiauliai, servicing the northern region of Lithuania. From its
origins in Šiauliai region the bank has now expanded to cover the whole
Lithuania being represented by a network of 43 branches in 25 cities. SB has
grown steadily since 2000. It has an overall market share by total assets of
3%, while its market share in servicing SMEs is estimated at 30% in Siauliai
region and at 15% overall in Lithuania.
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EBRD finance:
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Senior debt for on-lending to private sector corporate customers in the
aggregate amount of up to EUR 12 million with an A/B loan structure, B loan to
be syndicated.
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Total project cost:
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Up to EUR 12 million.
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Environmental impact:
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SB is required to apply environmental procedures in accordance with EBRD’s
Environmental Procedures for Local Banks (including the Environmental Referral
List and Exclusion List). In implementing these procedures SB will assess
potential environmental issues associated with sub-projects, which are
required to comply, at a minimum, with local/national health, safety,
environmental and public consultation requirements.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr Donatas Savickas
AB Šiauliu bankas
149 Tilžės Str.,
Šiauliai
Lithuania
Email: d.savickas@sb.lt
Phone: +370 41 595602
Fax: +370 41 430774
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EBRD contact:
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Ieva Grauzinyte, Operation Leader: grauzini@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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