Project Description
EBRD invested EUR 21 million in senior preferred bonds placed by Siauliu Bankas AB ("SB") as part of a EUR 85 million tap issuance on the existing senior preferred bonds listed on the AB NASDAQ Vilnius Stock Exchange. The bonds have a 3-year remaining maturity with a call option in 2-years time.
Project Objectives
The project supports the resilience and regulatory compliance of a systemically important institution in Lithuania and contributes to the capital market development of the country. The project also delivers on the Bank's green agenda and national green economy priorities for Lithuania.
Transition Impact
ETI score: 61
The expected transition impact of the project stems from its contribution to the Resilient and Green transition qualities.
The project contributes the Resilient transition quality by helping a systemically important bank in Lithuania to meet its regulatory requirements towards a loss absorbing funding base as well as building its resilience to market and regulatory shocks. The operation will also contribute to the capital market development in Lithuania at a time of deteriorating market conditions and increased geopolitical risk in the Baltic countries given the war on Ukraine.
The Green transition quality is underpinned by the green use of proceeds. SB will allocate 1.5x of EBRD's investment for financing green projects in line with the EBRD's Green Economy Transition eligibility criteria for Lithuania.
Client Information
SIAULIU BANKAS AB
SB is the fourth largest bank in Lithuania with EUR 4 billion of total assets as of 9M 2022. It provides retail, corporate and other financial services with a focus on SMEs. The bank is listed on NASDAQ-Baltic and counts more than 17,000 shareholders. EBRD is the largest shareholder with a stake of 20%, followed by Invalda INVL AB (8.1%).
EBRD Finance Summary
EUR 21 million
Total Project Cost
EUR 160 million, out of which EUR 85 million tap issuance
Additionality
The project exhibits strong additionality by i) bridging the funding gap to ensure regulatory compliance with the MREL requirement at a time of heightened market volatility amplified by geopolitical risk and reduced investors' appetite, and (ii) encouraging SB's green agenda by promoting financing of green projects in line with EBRD's GET criteria.
Environmental and Social Summary
Categorised FI (ESP 2019), SB is an existing client of the Bank and will be required to continue to comply with EBRD's Performance Requirements 2, 4 and 9 and to report annually to the Bank on ESHS issues and performance. As for all capital market transactions, the use of EBRD's funding under this project for Category A projects is excluded. The funding allocated towards GET-eligible projects will need to follow the E&S Eligibility Criteria for renewable energy projects, if such projects are being financed.
Technical Cooperation and Grant Financing
None
Company Contact Information
Tomas Varenbergas
tomas.varenbergas@sb.lt
+370 5 2032 200
www.sb.lt
Tilzes Street 149 Siauliai, LT-76348 Lithuania
PSD last updated
06 Dec 2022
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 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 the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both 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. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
