- EIB Group financing in Lithuania last year totalled €449 million, bolstering business and green investments nationwide.
- Funding supported 1,200 Lithuanian companies and sustained 19,000 jobs.
- Energy storage and clean railways among key 2024 projects.
The European Investment Bank (EIB) Group’s financing in Lithuania last year amounted to €449 million, spurring business investments and accelerating the country’s green transition. The total for 2024 includes €240 million from the EIB and €209 million from the European Investment Fund (EIF), which targets small and medium-sized enterprises (SMEs).
The EIB Group pledges last year in Lithuania supported 1,200 SMEs and Mid-Caps, sustained 19,000 jobs and covered 21 investment projects across the country. Top operations included EIB loans of €105 million to Lithuanian utility Ignitis Group for expanding a pumped storage hydroelectric power plant and €100 million to national railway service LTG Link for buying electric and battery trains.
"Lithuania's commitment to sustainability is inspiring," said EIB Vice-President Thomas Östros. "Our investments in the country in 2024 underscore our dedication to supporting Lithuania's green transition and economic resilience. We are helping to build a sustainable future for all Lithuanians."
The level of EIB Group financing in Lithuania in 2024 was broadly in line with the organisation’s average annual commitments of €562 million in the country over the past five years. For example, EIB Group financing in Lithuania totalled €654 million in 2023 and €219 million in 2022.
Energy and transport projects
The €105 million EIB loan last year to Ignitis Group is for expanding the Kruonis Pumped Storage Hydroelectric Power Plant and making it one of Europe's largest energy-storage facilities. The goal is to increase Lithuania's energy independence and help the country achieve 100% renewable electricity by 2030.
The €100 million EIB loan to LTG Link is for replacing a third of the company’s train fleet. The aim is to reduce carbon-dioxide emissions from trains, shorten rail-travel times and improve passenger accessibility.
Also in the area of energy, the EIB last year signed a €35 million loan to district utility Kauno Energija for upgrading the heating and hot water system of the city of Kaunas by refurbishing pipelines, adding heat storage tanks and integrating renewable sources. This project will boost energy efficiency, diversify the energy mix and reduce reliance on imported natural gas, benefiting around 400,000 residents and businesses.
Supporting small companies
The EIF’s pledges in Lithuania last year included nearly €129 million to businesses through deals with various banks and financial institutions including AB Mano Bankas, AB SEB Bankas, Swedbank Bank Lithuania, UAB SME Bank, Lithuanian Central Credit Union, Taurus Fondas UAB and UAB Heavy Finance.
These agreements unlock loans to Lithuanian SMEs at preferential terms to support growth, create jobs and speed up the transition to a carbon-neutral economy.
In 2024, the EIF also invested €50 million in IAM CEE Student Housing Fund, an infrastructure fund committed to building housing for up to 3,500 students in Central-Eastern European countries including Lithuania, and €30 million in INVL Private Equity Fund II, a private equity fund dedicated to boosting investments in high-growth SMEs mainly in Lithuania.
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.
All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.