Siauliu Bank - Convertible Senior Loan

Location:

Lithuania

Project number:

40437

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

29 Jul 2009

Status:

Repaying

PSD disclosed:

06 Aug 2009

Project Description

The EBRD is providing up to €30 million to Siauliu Bankas, SME focused regional bank, headquartered in Siauliai in northern Lithuania with a country wide branch network.
The proposed project comprises a senior convertible loan in two tranches and has a dual objective of supporting financial intermediation and potential future recapitalisation support: the loan will encourage SME and municipal lending while the convertible element incorporated will allow EBRD to promptly address the recapitalisation needs if required.

Transition Impact

The project aims to promote lending continuity and stability in the banking system. Siauliu Bankas is a well-managed local bank which has a proven track record of working with SMEs through its strong branch network. EBRD’s financing will help to support lending to the real economy in the current difficult economic conditions in Lithuania.
By working with a regional bank, the project will also reduce regional income disparities as it will increase banking services and economic activity outside the capital city.

The Client

Siauliu Bankas is the 6th largest bank in Lithuania with total assets of €590 million and equity of €82 million as of end-March 2009, rated Ba3 by Moody’s.
Siauliu Bankas is headquartered in Siauliai in northern Lithuania, operates countrywide and is viewed as one of the leading SME banks in the country.

EBRD Finance

A senior convertible loan in two tranches.

Project Cost

Up to €30 million.

Environmental Impact

SB is familiar with EBRD’s environmental requirements from earlier operations with the Bank including the SME credit line. In the context of this equity investment, SB applies EBRD’s Environmental Procedures for Local Banks to the full range of its commercial lending activities, including compliance with EBRD’s Exclusion and Referral List, providing annual environmental reports of all its lending activities to EBRD and requiring all its borrowers to comply, at a minimum, with Lithuania health, safety, environmental and public consultation requirements.

Technical Cooperation

None.

Company Contact

Mr Donatas Savickas
Member of the Board, Deputy Chairman of the Board
149 Tilžės Street
Siauliai
LT-76348
Lithuania
Telephone: +370 41 595 602
Fax: +370 41 430 774
Email: d.savickas@sb.lt
Website: www.sb.lt

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.