The European Bank for Reconstruction and Development (EBRD) is supporting Lithuania’s green transition and capital market innovation with a €50 million landmark investment in the country’s first green asset backed securitisation, originated by ILTE, Lithuania’s national development bank, as part of a €112 million issuance.
This pioneering transaction is the first true sale green securitisation in the Baltic states, setting a new benchmark for sustainable finance. Backed by ILTE’s portfolio of performing energy-efficiency loans, the notes have achieved a AAA rating from two leading international agencies and have been listed on the Nasdaq Vilnius exchange.
By transforming energy-efficiency loans into investable securities, the transaction introduces innovative market-based instruments and shows the strength of Lithuania’s recently reformed securitisation framework. It also creates a replicable model for attracting long-term institutional capital, boosting investor confidence and accelerating the development of the region’s capital markets.
The proceeds of the bond issuance will unlock ILTE’s capital, enabling it to significantly expand lending for energy-efficiency upgrades in multi-apartment buildings nationwide. This will support Lithuania’s ambitious goal of renovating 10,000 buildings by 2030. The initiative will benefit local small and medium-sized enterprises and create jobs, as well as delivering tangible environmental gains by reducing energy consumption and cutting CO₂ emissions.
The EBRD’s participation sends a strong signal to the market, introducing a novel green business structure that recycles capital for further investment in the renovation of buildings. The Bank’s expertise in securitisation structures and its targeted policy engagements in Lithuania have been instrumental in making this transaction possible, reinforcing ILTE’s capacity to diversify funding and deploy new energy-efficiency loans.
The EBRD’s Head of the Baltic States, Tomas Kairys, said: “This issuance is a milestone not just for ILTE, but for Lithuania and the entire Baltic region. By backing this pioneering securitisation, we’re sending a clear signal to investors at home and abroad: Lithuania’s capital market is growing in both size and sophistication. We look forward to supporting more innovative green issuances that deepen and strengthen the region’s financial markets, and we are pleased to continue our successful cooperation with ILTE to ensure that Lithuania’s building modernisation programme keeps expanding.”
Dainius Vilčinskas, the CEO of ILTE, said: “This issuance sends a clear signal to foreign investors that Lithuania’s capital market is open and reliable for long-term investments, and for us it marks a new stage of development. We have succeeded in attracting strong international investors and implementing a securitisation structure that has not previously been used in the Baltic states. The funds raised will significantly expand financing for the renovation of apartment buildings and ensure that modernisation projects move forward faster and more efficiently.”
ILTE, Lithuania’s national development bank, is a longstanding partner of the EBRD, supporting the country’s strategic economic objectives and sustainable growth. Working directly, through ILTE Group companies, and in cooperation with other financial market participants, the institution focuses on improving access to financing for businesses, the public sector, and clients in agriculture and fisheries. ILTE plays a key role in attracting private capital to support domestic enterprises, investing in projects that drive innovation, enhance competitiveness, promote sustainability and strengthen energy efficiency.
The EBRD is a leading institutional investor in Lithuania and the Baltic states. To date, the Bank has invested more than €2 billion in the country across 151 projects.