Lithuania Will Issue Green Bonds

Date

2018 04 09

Rating
1
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The Government supported the decision on granting a loan to the Public Investment Development Agency (hereinafter - VIPA) by issuing Government securities – green bonds. The generated funds will be invested in modernisation of multi-apartment buildings as well as in enhancing energy efficiency. The Government of the Republic of Lithuania will be the first public authority issuing green bonds in the Baltic states.

“The interest in green bonds is a rapidly growing and global, worldwide process. The European Union together with the United States are among the green bond leaders. It is gratifying that also the Government of the Republic of Lithuania decided to make use of this financing instrument. This will encourage foreign investors to be more interested in investing in Lithuania”, says Minister of Finance Vilius Šapoka.

It has been decided to issue a loan on-lent by the State from the funds of green bonds for the period of 10 years to the Public Investment Development Agency (hereinafter - VIPA). The loan will be used for the project “Housing Renovation Fund“, which helps the owners of multi-apartment buildings modernise buildings, improve energy efficiency and reduce heating costs.

It is planned to issue green bonds at the end of April. It is intended to grant the loan of EUR 68 million and to finance the renovation of 156 multi-apartment buildings.

VIPA – is a financial institution established by the State aiming at financing and promoting a sustainable development in the areas with market failure in striving for gainful activities. Over the year 2018 VIPA aims to become the National Development Agency (NDA), which through financial instruments would promote long-term and sustainable investment.