Siauliu Bankas Bonds

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

In November 2022, the EBRD invested EUR 21 million in senior preferred bonds placed by Siauliu Bankas AB ("SB") as part of 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-year time.

In June 2023, the EBRD invested EUR 10 million in subordinated Tier 2 notes issued by SB. This was SB's inaugural Tier 2 placement and first public subordinated issuance in the Lithuanian market. The bond has a 10-year maturity with a call option after 5-year time and is listed on the AB NASDAQ Vilnius Stock Exchange.

In November 2023, the EBRD invested EUR 12 million in senior preferred bonds placed by SB as part of EUR 50 million tap issuance on the existing senior preferred bonds listed on the AB NASDAQ Vilnius Stock Exchange. The bonds have a 2-year maturity with a call option in 1-year time.

The total EBRD investment amounts to EUR 43 million.

Project ID 53087

Status Signed

Location

Lithuania

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

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

Company Contact Information

Tomas Varenbergas
tomas.varenbergas@sb.lt
+370 5 2032 200
www.sb.lt
Tilzes Street 149 Siauliai, LT-76348 Lithuania

Project ID 53087

Status Signed

Location

Lithuania

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

02 Nov 2022

Disclosure date

06 Dec 2022

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

The total EBRD investment amounts to EUR 43 million.

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

ected 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 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 the 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 end-2022. It provides retail, corporate and other financial services with the focus on SMEs. The bank is listed on NASDAQ-Baltic and counts more than 19,000 shareholders. EBRD is the largest shareholder with a stake of 14.0%, followed by Invalda INVL AB at 9.9%.

EBRD Finance Summary

EUR 43 million

Total project cost

Under the senior preferred bonds programme, EUR 210 million, out of which EUR 50 million tap issuance; under the subordinated Tier 2 programme, EUR 50 million.

Additionality

The project exhibits strong additionality by i) supporting regulatory compliance with the MREL requirement at the time of heightened market volatility amplified by the 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 & 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 PRs 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 Cat. 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

28 Nov 2023

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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Siauliu Bankas Bonds

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

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)