IFC and Lithuania’s SEB Bank Launch Transaction to Help Businesses Adopt Renewable Energy
In Washington, D.C.:
Lotte Pang, IFC
Phone: + 1 (202) 7584290
E-mail: LPang@ifc.org
In Vilnius:
Arvydas Zilinskas, SEB Bank
Phone: +37052681198
E-mail: arvydas.zilinskas@seb.lt
Vilnius, Lithuania, April 9, 2009—IFC,
a member of the World Bank Group, and SEB Bank today launched an innovative
transaction that will support lending of around €50 million to help small
and medium enterprises in Lithuania switch to renewable sources of energy.
Through the transaction, a €10 million facility will be established that
will allow SEB Bank to provide equity-like support in the form of subordinated
loans to local renewable energy projects, while IFC assumes the underlying
risk of the loans. The transaction is a global pilot for an approach that
involves offering subordinated loans to finance small-scale renewable energy
transactions through commercial banks. This approach could also be used
to support other sustainability investments.
“We believe this agreement between IFC and SEB Bank could provide a significant
stimulus for the development of renewable energy projects in Lithuania,”
said Raimondas Kvedaras, Senior Executive, Vice President and Head of Corporate
Banking of SEB Bank. “This is particularly meaningful because our country
has an obligation to the E.U. to increase the amount of energy produced
from renewable sources by seven percent by 2010. This model of energy project
financing could also attract much-needed investment to Lithuania during
the economic slowdown.”
Georgina Baker, IFC Director for Global Financial Markets, said, “IFC
is committed to supporting renewable energy, particularly during difficult
economic times. We are excited about this pilot transaction and look forward
to working with SEB Bank to successfully implement it. This innovative
financing mechanism could become an important tool for financing sustainable
energy investments and mitigating climate change.”
Tackling climate change through sustainable energy, renewable energy, and
energy efficiency is a global priority for IFC. Through its client base
of more than 400 financial intermediaries, IFC has created innovative new
structures in renewable energy finance and developed customized credit
lines that help small and medium enterprises make energy efficiency upgrades,
invest in cleaner production technology, incorporate sustainability standards
into supply chains, and strengthen corporate governance.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
About SEB Bank
SEB Bank is the major commercial bank in Lithuania, offering a full range
banking services to private individuals, corporate customers and financial
institutions. The bank is the local market leader in terms of key banking
services offered to over a million customers across Lithuania. It is a
member of the SEB Group, a leading Northern European financial group. The
SEB Bank Group in Lithuania consists of SEB Bank and its six subsidiary
companies. For more information, visit www.seb.lt.
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