Ignitis Grupe IPO

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

An equity investment of EUR 67.5m in the initial public offering ("IPO") of AB Ignitis Grupe ("Ignitis Grupe", the "company"), a leading utility and renewable energy company in the Baltics region. The EBRD's subscription accounted for 15% of the shares newly issued in the IPO, equivalent to 4% of the company's total stake. The company's shares are now dual-listed on the Vilnius Stock Exchange and the London Stock Exchange.

Project ID 52352

Status Disbursing

Location

Lithuania

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Jonas Rimavicius
Jonas.Rimavicius@ignitis.lt
+370 620 74043
www.ignitisgrupe.lt
Ignitis Grupe, Zveju str. 14, LT-09310, Vilnius, Lithuania

Project ID 52352

Status Disbursing

Location

Lithuania

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

16 Sep 2020

Disclosure date

25 Nov 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project description

Project objectives

The goal is to support the largest IPO in the Baltics region, a milestone for regional capital markets development. The proceeds of the Bank's subscription will be used to finance the company's distribution network investment programme.

Transition impact

ETI Score:61

ration will deliver climate mitigation benefits through energy efficiency, network modernisation and new green investments ("Green" transition quality).

The operation will also make an important contribution to the local equity capital markets development, a key objective of the Bank in the Baltics ("Resilient" transition quality).

EBRD Finance Summary

EUR 67,500,000.00

3,000,000 subscription into the Company's common shares.

Total project cost

EUR 450,000,000.00

Additionality

Financing Structure: The Bank's financing is to provide a valuable signal to the market, support the transaction as key anchor investor, enhance the corporate governance and facilitate a successful placement in the current environment given the COVID-19 outbreak.

Risk mitigation: The Bank's involvement provides comfort to clients and investors, by mitigating non-financial risks.

Environmental & Social Summary

Categorised B (2019 ESP). The Transaction is an equity investment as part of an IPO aimed at supporting capital markets in Lithuania and the Bank's due diligence has been limited to a review of publicly available documents, questionnaire and discussion with the Company's EHS management by the ESD specialists which allowed the ESD to undertake an adequate assessment of environmental and social risks and impacts of this Transaction in accordance with the Bank's 2019 ESP.

The Bank's use of proceeds are aimed at strengthening the electricity distribution network needed for the development of renewable energy projects and improving energy efficiency. The Bank undertook a corporate audit as well as reviewed these investments as part of the ESDD. The Group has a dedicated EHS management team, which is developing corporate EHS management systems and has the institutional capacity to implement the Bank's Performance Requirements. It develops sustainability and non-financial reports for the Group and individually for some subsidiaries. These reports show that, overall, the Company has a good compliance record and no material non-compliance issues have been identified. The ESDD has also confirmed that the Company has good HR Polices in line with best practice and is implementing COVID-19 response measures. There are no plans for retrenchment or restructuring at present.

The EBRD proceeds will not be used for any Category A projects and the Company will not invest in any coal fired units in the future. The Company does not plan any A category project and any future Projects will be screened in line with EBRD requirements and information published in line with National, EU and the Bank's requirements.

An ESAP has been developed and agreed based of the findings of the ESDD and in addition to the above, it will include requirements relating to, among others, strengthening of non-financial reporting in line with best practices and EU law and associated guidance on climate related information. The Company commits to implement TCFD and report in line with the recommendations by 2023. The ESAP further requires that if the Company was to develop projects in sensitive areas or of a sensitive nature, those would need a full ESIA in line with the Bank's requirements.

The Bank will monitor the Company's performance through reviewing annual reports prepared by the Company and site visits as deemed necessary.

Technical Cooperation and Grant Financing

None

Company Contact Information

Jonas Rimavicius
Jonas.Rimavicius@ignitis.lt
+370 620 74043
www.ignitisgrupe.lt
Ignitis Grupe, Zveju str. 14, LT-09310, Vilnius, Lithuania

PSD last updated

25 Nov 2020

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Ignitis Grupe IPO

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)