Lithuanian Green Bonds are already on the Stock Exchange

Date

2018 04 30

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The Government of the Republic of Lithuania has issued a green bond issue, which is listed on the Nasdaq Baltic Debt Securities List. This is the first issue of Government securities issued by the Baltic States, which raised funds to be used to implement green projects, i.e. the modernization of multi-apartment buildings and increase of energy efficiency.

‘We are pleased to present Lithuanian investors with green bonds issued by the Government. Thus we are increasing the opportunities for Lithuanian capital market participants to contribute to the financing of green projects. Interest in green bonds is growing rapidly worldwide; it’s a global process. I am happy that we are also moving in this progressive direction and developing a green bond market in the country,‘ Vilius Šapoka, the Minister of Finance, said.

The demand for the Government bonds issued by the Government of the Republic of Lithuania amounted to almost EUR 34 million. Today, the Government decided to borrow EUR 20 million. It is planned that through additionally contributions over three years the total amount of the Green Bonds will be up to EUR 68 million.

The majority of the issue was bought by an Austrian investor.

An annual coupon rate to be paid for the Government bonds is 1.2%. The maturity of the issue of the Green bonds is 10 years; they will be redeemed on 3 May 2028. The nominal value of one bond is EUR 100s.

It has been decided to on-lend  the funds of the Green bonds as the State loan for the 10-year period to the Public Investment Development Agency (hereinafter - VIPA). The loan will be used for the project ’Housing Renovation Fund‘, which helps owners of multi-apartment buildings to modernise buildings, improve energy efficiency and reduce heating costs.

‘We are pleased with the decision of the Government to issue green bonds and provide their funds as a loan to our agency. The funds will be allocated to the modernization fund for multi-apartment buildings, which will help to provide owners with the necessary financing for implementation of energy efficiency measures for their apartment building,’ Gvidas Dargužas, the Managing Director of VIPA, said.

Green Bonds are one of the tools that contribute to solving such issues as the climate change, depletion of natural resources, loss of biodiversity, as well as water, air and soil pollution.