Siauliu Bankas credit line

Location:

Lithuania

Project number:

35912

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

12 Jul 2005

Status:

Completed

PSD disclosed:

19 May 2005

Project Description

The proposed project will give Šiaulių Bankas (“SB”) access for the first time to the international syndicated debt market. The loan will improve the bank’s asset-liability maturity structure and diversify its funding base enabling SB to expand its lending activity and implement its business plan. The loan funds will be used to provide medium term loans to SB’s private sector corporate customers, which are mostly SMEs.

Transition Impact

The proposed project will have a positive impact on the Lithuanian economy by supporting the development and expansion of a regionally strong bank that is focused on servicing SMEs, and by providing better access to medium-term financing for local companies. With domestic credit to private sector share of GDP at 19.9%, the country’s banking sector intermediation level is lower than the Central European average (31.8%).

The proposed project will also increase financial intermediation of the banking sector of Lithuania, especially in the regions outside the capital city, which form the main geographical business area of SB. In addition, the project will serve as an introduction of SB to international syndicated debt markets paving the way for the bank’s raising term funding independently in the future.

The Client

SB was established in 1992 as a regional bank based in Lithuania’s forth largest town of Šiauliai, servicing the northern region of Lithuania. From its origins in Šiauliai region the bank has now expanded to cover the whole Lithuania being represented by a network of 43 branches in 25 cities. SB has grown steadily since 2000. It has an overall market share by total assets of 3%, while its market share in servicing SMEs is estimated at 30% in Siauliai region and at 15% overall in Lithuania.

EBRD Finance

Senior debt for on-lending to private sector corporate customers in the aggregate amount of up to EUR 12 million with an A/B loan structure, B loan to be syndicated.

Project Cost

Up to EUR 12 million.

Environmental Impact

SB is required to apply environmental procedures in accordance with EBRD’s Environmental Procedures for Local Banks (including the Environmental Referral List and Exclusion List). In implementing these procedures SB will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.

Technical Cooperation

None.

Company Contact

Mr Donatas Savickas
AB Šiauliu bankas
149 Tilžės Str., Šiauliai
Lithuania

Email: d.savickas@sb.lt

Phone: +370 41 595602
Fax: +370 41 430774

 

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.