Syndicated loan for SME-focused Šiaulių Bankas


Syndicated loan for SME-focused Šiaulių Bankas

The EBRD is lending €12 million to Lithuania’s Šiaulių Bankas to support the development and expansion of a regionally strong bank focused on small- and medium-sized enterprises.

 €7 million is being syndicated by commercial banks (Commerzbank, HSH Nordbank, Bankgesellschaft Berlin,WGZ-Bank, and Caixa Geral de Depόsitos), while the EBRD is keeping €5 million for its own account. The transaction gives Šiaulių Bankas access to the international commercial syndicated debt market for the first time.

The loan follows an equity investment by the EBRD in Šiaulių Bankas earlier this year, when it acquired a 16.1 per cent stake for €6.7 million. The EBRD and Šiaulių Bankas have been business partners since 2000, when the Bank provided it with a successful SME credit line.

Under the SME credit line, Šiaulių Bankas has made some €11 million in loans to more than 600 SMEs operating in light manufacturing, wholesale and retail trade, production, distribution, services and transport. Šiauliu Bankas is based in the manufacturing centre of Šiauliai in Northern Lithuania.  In recent years, it has expanded its network to 44 branches in 26 locations throughout Lithuania.

The new loan should help Šiaulių Bankas grow significantly by easing its access to medium- and long-term funding, said Jean Marc Peterschmitt, EBRD’s Director Bank Lending. Additional funds will allow Šiaulių Bankas to continue financing private business customers and particularly small- and medium-sized enterprises at competitive market terms, thus contributing towards further growth of Lithuania’s economy.
“We are happy to continue our strong relationship with the EBRD with this loan,” said Algirdas Butkus, Chairman of the Board of Šiaulių Bankas. “We are particularly pleased that this transaction is being syndicated as it will help us to get known as a successful local bank on the international syndication market. We will continue our support for SMEs, which is at the heart of the activity of our bank.”