The Baltic capital markets have reached a major milestone with the first-ever securitised AAA-rated green bond issuance in the region, completed under ILTE Lithuania’s “Vytis Reno Loans” project.
Through the transaction, ILTE, acting as the manager of the National Development Fund (DNMF), raised EUR 160 million by issuing bonds and loan note. The proceeds will be used to finance the renovation of multi-apartment buildings, contributing to improved energy efficiency and sustainability.
The issuance is notable for its innovative cross-border structure: the bonds were issued via an Ireland-established issuer, governed by English law, registered in Lithuania, assigned a Lithuanian ISIN, and listed and traded on the Lithuanian market. This structure ensures access for local investors while meeting international market standards.
“The issuance sends a clear signal to foreign investors that the Lithuanian capital market is open and reliable for long-term investments. For us, it also marks a new stage of development. <…> This structure will serve as a foundation for future issuances, which could grow up to EUR 800 million in the future. ILTE will continue to develop innovative financing solutions that increase energy efficiency, contribute to the implementation of other state strategic objectives, and promote the Lithuanian capital market,” says ILTE CEO Dainius Vilčinskas.
Reflecting on the transaction, TEGOS partner and project lead Dalia Augaitė notes:
“Together with the ILTE team, we contributed not only to building the securitisation ecosystem, but also to the development of the capital markets. This transaction is another step forward achieved with innovative and courageous clients – opening access to international financing that flows into our economy and improves people’s quality of life. And this is only the beginning. We must continue strengthening both the tax environment and the securitisation framework, so that future transactions can be fully implemented in Lithuania and the country can become a Pan-Baltic securitisation hub.“
ILTE was advised by the TEGOS team, whose expertise contributed to the successful implementation of this landmark project: Dalia Augaitė, Marijus Kriščiūnas, Loreta Antanaitienė, Lukas Stankevičius, Nortautas Zenevičius and Paulius Žalnieraitis.
