Lietuvos Energija Green Bond



Project number:


Business sector:

Power and energy

Notice type:


Environmental category:


Approval date:

05 Jul 2017



PSD disclosed:

13 Jul 2017

Translated version of this PSD: Lithuanian

Project Description

Investment in EUR-denominated green bond issue in an amount of EUR 30 million as part of a total aggregate issuance of EUR 300 million by Lietuvos Energija UAB ("LE UAB"), the Lithuanian's national energy company and one of the largest state-owned energy groups in the Baltics.

Project Objectives

The investment programme which the EBRD is supporting is critical to help LE UAB to upgrade its distribution network and expand its renewable energy capacity in order to strengthen the sustainability and security of Lithuania's energy supply and reduce its reliance on imported energy.

The issue will also enhance LE UAB capital structure by centralising indebtedness at the holding level.

Transition Impact


The transition impact is derived from:

i. Demonstration of new innovative way of financing: green bonds are a relatively new financial instrument that provide for an alternative financing method for investments related to climate change mitigation and achieving other environmental objectives. Therefore, these instruments are a good way to diversify an issuers' funding base, as well as strengthening its resilience to financial market shocks.

ii. Setting standards of corporate governance: compliance with the Green Bond Principles requires issuers to comply with high standards of transparency, disclosure and integrity when issuing a green bond, especially in relation to the use and management of the proceeds of the bond, as well as project selection and reporting.

iii. Setting standards of business conduct: the investment will assist Lithuania to meet its EU renewable energy target and to decarbonise its economy.

Client Information


LE UAB is a Lithuanian state-owned energy company and one of the largest state-owned energy groups in the Baltic countries, who mainly operates in (i) distribution of electricity and gas, (ii) generation of electricity and heat, and (iii) trading and supply of electricity and gas.

EBRD Finance Summary

EUR 30,000,000.00

Total Project Cost

EUR 300,000,000.00

Environmental and Social Summary

Categorised B (2014 ESP). Environmental and Social Due Diligence ("ESDD") was undertaken by the Bank's environmental specialists and it reviewed the issuer LE UAB's corporate environmental and social ("E&S") policies, management systems and existing operations, and specifically focussed on assessing the projects to be financed through the green bond issue. In compliance with capital market transaction rules and regulations, the ESDD was undertaken by reviewing publicly available information. EBRD also met with the LE UAB's green bond team to assess the Green Bond Programme.

The proceeds of the issuance are proposed to be used to finance the company's investments in wind energy, enhancement of efficiency of the electricity distribution grid, as well as energy production from waste and biomass. LE UAB's Green Bond Programme is aligned with Green Bond Principles, voluntary process guidelines that recommend transparency and disclosure and promote integrity in the approach for issuance of a Green Bond. The Green Bond Programme has also obtained independent second opinion and, based on the overall assessment of the project types that will be financed by the green bonds and governance and transparency considerations, it has received a "Dark Green" shading. This is allocated to projects that correspond to the long-term vision of a lowcarbon and climate resilient future. Typically this will entail zero emission solutions and governance structures that integrate environmental concerns into all activities. LE UAB when feasible will report on the expected and actual impacts of the projects included in its Green Bond Programme on its website.

Technical Cooperation


Company Contact Information

Jonas Rimavicius

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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