EBRD’s Landmark Green Finance Deal In Lithuania Demonstrates Market Confidence And Innovative Funding For Energy-Efficiency Projects

The European Bank for Reconstruction and Development (EBRD) is supporting Lithuania’s green transition and capital market development through a €50 million investment in the country’s first green asset-backed securitisation, originated by ILTE, Lithuania’s national development bank. The transaction forms part of a larger €112 million issuance and represents a major milestone in sustainable finance for the Baltic region. This securitisation is the first true-sale green issuance in the Baltic states, setting a new benchmark for market innovation.

The notes, backed by ILTE’s portfolio of performing energy-efficiency loans, have received AAA ratings from two leading international agencies and have been listed on the Nasdaq Vilnius exchange. By converting energy-efficiency loans into investable securities, the transaction introduces innovative market-based instruments, demonstrating the effectiveness of Lithuania’s recently reformed securitisation framework. It also establishes a replicable model for attracting long-term institutional capital, increasing investor confidence, and accelerating the development of the region’s capital markets.

The proceeds from the issuance will enable ILTE to expand its lending for energy-efficiency upgrades in multi-apartment buildings across Lithuania. The initiative is aligned with the country’s goal of renovating 10,000 buildings by 2030, supporting local small and medium-sized enterprises, creating jobs, and delivering measurable environmental benefits through reduced energy consumption and lower CO₂ emissions. EBRD’s involvement signals strong market confidence in this novel green finance structure. The Bank’s expertise in securitisation and targeted policy engagement in Lithuania were instrumental in enabling the transaction, reinforcing ILTE’s ability to diversify funding sources and deploy new energy-efficiency loans.

Tomas Kairys, Head of the Baltic States at EBRD, described the issuance as a landmark for both ILTE and the wider region. He emphasized that the securitisation demonstrates the growing sophistication and capacity of Lithuania’s capital markets and highlighted EBRD’s ongoing commitment to supporting innovative green financial instruments that expand the country’s building modernisation programme.

Dainius Vilčinskas, CEO of ILTE, noted that the transaction sends a strong signal to international investors regarding the openness and reliability of Lithuania’s capital markets. He stated that the securitisation structure, not previously used in the Baltic states, allows ILTE to significantly increase financing for apartment building renovations, helping modernisation projects advance more efficiently.

ILTE, a longstanding partner of the EBRD, plays a central role in supporting Lithuania’s strategic economic objectives and sustainable growth. The bank works directly, through its group companies, and in collaboration with other financial market participants to improve access to financing for businesses, public sector entities, and clients in agriculture and fisheries. ILTE attracts private capital to domestic enterprises, investing in projects that foster innovation, strengthen competitiveness, promote sustainability, and enhance energy efficiency. The EBRD is a leading institutional investor in Lithuania and the Baltic states, with over €2 billion invested in the country across 151 projects to date, supporting economic development and sustainable growth throughout the region.