Project Description

Provision of a senior loan of up to EUR 8.0 million to UAB Liepvita (the "Borrower", or the "Company"), to be provided alongside an equivalent loan from a parallel lender for the construction and operation of a multi-phase warehouse development project in Vilnius, Lithuania ("J55" or the "Project" ).The Project is being developed and managed by UAB Sirin Development (the "Sponsor" or "Sirin"), one of the largest regional real estate developers that operates in Lithuania and Latvia.

Project Objectives

The proceeds from the loan will be used to retroactively finance two completed, operational warehouse assets with a total GLA of ca. 36k sqm in Vilnius, Lithuania, thus supporting the development of A-class sustainable real estate in the country.

Transition Impact

ETI score: 68Transition impact will be derived from the following:(i) the Well-Governed quality as the Sponsor will implement several corporate climate governance improvements, including in the areas of strategy, governance and accountability and reporting, metrics and targets.(ii) the Green quality, as the Sponsor committed to certify the J55 warehouse to a BREEAM "Very Good" standard.

Client Information

LIEPVITA UABUAB Liepvita is a limited liability company incorporated in Lithuania.

EBRD Finance Summary

EUR 8,000,000.00

Total Project Cost

EUR 29,440,000.00

Additionality

The Bank is additional in the project as i) the EBRD project mobilises additional funding through a local parallel financing structure and ii) the Sponsor makes use of EBRD expertise on higher environmental standards and the Bank's expertise on corporate governance improvements, including for climate risk management.

Environmental and Social Summary

Categorised B (2019 ESP). The project was appraised against environmental and social requirements of the Bank. The review of site preparation and organisation plans, recruitment strategy and project information provided to the public were found acceptable and appropriate to the level of project impacts. Public consultation was carried out in accordance with the national requirements which is also in line PR10. The project is not associated with resettlement or economic displacement. The project does not require a local Environmental Impact Assessment (EIA) but requires construction permits, which have been obtained. The construction contractor will be supervised by the Company via site management plans. The operations phase is not labour intensive and will be managed by the human resource policies proportionate to the scale of the operations. The Client has agreed a comprehensive environmental and social action plan (ESAP) with the commitments on occupational health and safety (OHS), worker and community grievance mechanism, construction & operation stage traffic safety management by contractors.The client is required to ensure that the project complies with relevant PRs and submits annual E&S reports for Bank's review and monitoring.

Technical Cooperation and Grant Financing

n/a

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.