The First Top Credit-Rated Bonds in the Baltic States — ILTE Raises €112 Million for Renovation

The Lithuanian National Development Bank ILTE has taken a major step toward building a sustainable financial market by successfully issuing the first secured green bond offering in the Baltic States, Vytis Reno Loans, valued at €112 million. Funds raised from international and local investors will be used to modernize apartment buildings across Lithuania.

The issuance is also notable for another historic milestone: these are the first listed green bonds in the Baltic States to receive the highest AAA credit rating, awarded by two international agencies—Fitch and Scope. The rating is even higher than that of the Lithuanian state (A+).

The European Bank for Reconstruction and Development (EBRD) assisted in preparing the issuance and invested €50 million. Other major institutional investors include the Nordic Investment Bank (NIB), which invested €31 million, and Swedbank, contributed EUR 31 million to the transaction. 

ILTE’s CEO, Dainius Vilčinskas, highlights that these bonds mark the beginning of an entirely new stage in the market. By using a securitization structure and issuing bonds with the highest credit rating, ILTE can now reach not only European but also major global institutional investors.

“This issuance sends a clear signal to foreign investors that Lithuania’s capital market is open and reliable for long-term investment, and for us it marks a new stage of development. We succeeded in attracting strong international investors and implementing a securitization structure that has not previously been used in the Baltic States. The funds raised will significantly expand financing for apartment building renovation and ensure that modernization projects move forward faster and more efficiently. This structure will also serve as the basis for future issuances, which could grow to as much as €800 million. ILTE will continue to develop innovative financing solutions that increase energy efficiency and support the implementation of other national strategic goals,” said Vilčinskas.

Tomas Kairys, Head of the Baltic States at EBRD, stated:

“This issuance is a milestone not just for ILTE, but for Lithuania and the entire Baltic region. By backing this pioneering securitization, we are sending a clear signal to investors at home and abroad: Lithuania’s capital market is growing in both size and sophistication. We look forward to supporting more innovative green issuances that will deepen and strengthen the region’s financial markets and are pleased to continue our successful cooperation with ILTE to ensure that Lithuania’s building modernization program keeps expanding.”

Investors emphasized that they recognize the value of this type of financing and its potential to provide a secure return.

Akvilė Skiparė, Head of Financial Institutions at NIB, commented:

“This issuance is an important milestone for the Baltic capital markets and a strong example of how innovative financing can accelerate the green transition. Investing in ILTE’s securitized green bond reflects our commitment to supporting Lithuania’s energy-efficiency ambitions and enabling households to benefit from lower emissions, lower costs, and higher-quality housing—both now and in the long term.”

Martynas Trimonis, Head of Swedbank’s Real Estate and Energy Clients Department, added:

“We are proud to contribute to an innovative financing structure and a new partnership with ILTE, which will enable the modernization of even more apartment buildings across Lithuania. One of Swedbank’s strategic goals is to help build a more sustainable environment in the country. Today, we are among the leaders in financing apartment building renovation in Lithuania – since 2011, we have allocated more than EUR 290 million to various related programmes. We see significant potential to remain actively involved in financing apartment building renovation in the future, as it not only helps reduce heat energy consumption but also improves people’s quality of life”.

Minister of Finance Kristupas Vaitiekūnas emphasized that this achievement represents a major step in the development of Lithuania’s capital markets and an effective way to secure funding sources.

“The AAA-rated issuance is not only a major achievement for Lithuania, but also a historic event for all Baltic capital markets. The Ministry of Finance, as the main shareholder, will continue to consistently strengthen ILTE with the goal of establishing it as the national development bank. We foresee a particularly important role for this institution: ILTE will need not only to significantly increase the scale of investments in Lithuania, but also to mobilize funds from international organizations and local investors. In this way, capital will flow directly into the Lithuanian economy, generating additional growth momentum. Our vision is that ILTE, operating according to the highest standards, will become one of the key financial institutions contributing to the country’s economic development and improving access to financing for both the private and public sectors,” the minister said.

The bonds will pay variable interest and principal on a quarterly basis and will mature in nine years. They will be listed on the Nasdaq Vilnius exchange, and the issuance prospectus has been approved by the Bank of Lithuania. The special-purpose vehicle (SPV) used for the issuance was established in Ireland.

Gediminas Varnas, Head of Nasdaq Vilnius, commented:

“This bond issuance is an exceptional and forward-looking initiative not only in Lithuania but across the entire Baltic region. Its uniqueness is reflected in both its innovative approach to financing and its international scope, opening up new opportunities for local and foreign investors. Nasdaq’s experience shows that such instruments not only strengthen the local market but also attract international capital, which is essential for achieving long-term economic growth and energy efficiency goals. Moreover, projects like this increase investor confidence in the Baltic region and promote its integration into the European financial ecosystem. With this issuance, ILTE sets a precedent that opens the door to broader use of the Lithuanian and Baltic capital markets.”

Based on the average investment required to renovate an apartment building, the funds raised through the bond issuance would be sufficient to renovate approximately 145 buildings. ILTE has been providing preferential loans for this purpose since 2015. To date, more than 1,000 apartment buildings have been renovated, with total investment exceeding €600 million.

Lithuania has committed to increasing energy efficiency by at least 40% by 2030, and the proceeds from this issuance will contribute directly to that goal. The green bond proceeds will be used exclusively to finance apartment building renovations, aiming to modernize homes, improve energy efficiency, reduce heating costs for residents, and increase the value and attractiveness of housing.

 

About ILTE
ILTE is Lithuania’s national development bank, supporting the country’s strategic economic objectives and sustainable growth. Working directly, through ILTE Group companies, and in cooperation with other financial market participants, the institution focuses on improving access to financing for businesses, the public sector, and clients in agriculture and fisheries. ILTE plays a key role in attracting private capital to support domestic enterprises and invests in projects that drive innovation, enhance competitiveness, promote sustainability, and strengthen energy efficiency.