State guarantee to the Nordic Investment Bank issuing a loan of EUR 100 million to UAB LTG Link
The Ministry of Finance has signed the State guarantee agreement with the Nordic Investment Bank (NIB) issuing a loan of EUR 100 million to UAB LTG Link for acquisition of electric trains. The agreement has been endorsed by Minister of Finance Gintarė Skaistė and NIB President and CEO André Küüsvek.
The funds of the loan issued by the NIB will be used to finance the acquisition of 15 electric trains in 2026-2027. Moreover, a loan of EUR 100 million with the State guarantee for this purchase will also be granted by the European Investment Bank (EIB), and approximately EUR 36 million will be committed by the company itself.
“These loans will allow the replacement of non-compliant diesel trains with modern, environment friendly ones. This means that train journeys will become more comfortable, with less pollution. This step will allow not only to replace old Russian rolling stock, but also will significantly contribute to the national and European objectives of the Green Deal”, said Minister of Finance G. Skaistė.
“Our continuous cooperation with LTG Group companies is greening Lithuania’s transport sector,” said NIB president and CEO André Küüsvek. “The fleet renewal will not only help LTG Link attract more travellers to choose trains over cars for their journeys, but also allow them to further strengthen the country’s railway integration with Europe.”
Two loans of EUR 100 million will be issued by the NIB and EIB till the end of 2032. The loans to the banks will be repaid by the company itself. 100 % of UAB LTG Link shares are owned byAB Lietuvos geležinkeliai (Lithuanian Railroad Company) (LG), where 100 % of shares of the latter company belong to the Republic of Lithuania represented by the Ministry of Transport and Communications.
Last updated: 11-10-2024
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