Lithuanian companies to get investment boost as EIF teams up with UAB ILTE to provide over €191 million for credit funds

• EIF and Lithuanian national development institution UAB ILTE offer a total of €191.6 million for private credit funds to support Lithuanian businesses
• Funding for non-bank credit providers involves €95.8 million of ILTE support matched by EIF
• Partnership to develop senior private credit market as alternative financing for companies in Lithuania

Luxembourg/Vilnius, 8 November 2024 - The European Investment Fund (EIF) is joining forces with Lithuanian national development institution UAB ILTE to provide as much as €191.6 million for non-bank credit providers to invest in companies in the country. The funding for these credit providers – also known as private credit funds – involves ILTE support of €95.8 million that is being matched by the EIF.

The initiative will accelerate the development of capital markets in Lithuania and builds on previous ILTE cooperation with the EIF, which is part of European Investment Bank (EIB) Group.  The goal of the new initiative is joint investments in up to five private credit funds, generating much-needed financing for Lithuanian companies.

“This investment will help further develop the local financing ecosystem in Lithuania, reducing the dependence on banking finance. Ultimately, this creates more opportunities for local companies to grow their businesses, create jobs and drive forward the economy,” said EIF Chief Executive Marjut Falkstedt. “We are glad to be contributing to strengthening the capital markets through a mix of local public resources and EIF funding.”

The planned investments will help foster a senior private credit market in Lithuania as an alternative source of financing for companies, diversifying their financing options.

"Access to finance for business in Lithuania is one of the lowest among EU countries,“ said Dainius Vilčinskas, CEO of ILTE. „The total amount of loans to businesses is 14% of GDP, while total bank financing is 35% of GDP. This step will allow companies to have more alternatives in choosing sources of financing, to keep their expansion plans on track, to develop new projects, while promoting competition and mobilising financing for business will help to increase private capital attraction. Global trends show that private debt funds are an attractive instrument and many funds will only increase their investments in this asset class."

Background information

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that target this market segment. In this role, the EIF advances key EU policy objectives including competitiveness, growth, human capital and climate action.

Press contacts

EIB Group

Kristiina Randmaa, tel.: +352 4379 72894 — k.randmaa@eib.org
Follow us on Twitter@eif_eu
Website: www.eif.org — press@eib.org

ILTE

Viktorija Voroncova, tel.: +370 6 386 3484 — Viktorija.Voroncova@ilte.lt

Website: www.ilte.lt