The newly established EUR 275 million multi-apartment buildings modernization fund starting operations

To give a new impetus to the renovation of apartment buildings, the SB Modernization Fund established by Šiaulių Bankas has started operations. Loans to the EUR 275 million Fund  were provided to the fund by Lithuanian and foreign financial institutions.

SB modernizavimo fondas, UAB, a subsidiary of Šiaulių Bankas, has signed agreements with the European Investment Bank (EIB), the Council of Europe Development Bank (CEB), Nordic Investment Bank (NIB), INVL Asset Management, Swedbank and Šiaulių Bankas. The 275-million-euro fund administered by Šiaulių Bankas will consist not only of investors, but also of the Lithuanian state and the European Structural and Investment Fund (ESIF).

“Investors focused on the newly established fund are ready to accelerate the renovation apartment buildings. We have set ourselves the ambitious goal of funding the renovation of more than half a thousand apartment buildings, which would allow residents to reduce the burden of rising heat costs and improve their quality of life. Rapid renovation of apartment buildings would reduce Lithuania’s dependence on fossil fuels, and would also make a significant contribution to the fight against climate change by reducing carbon dioxide emissions“, – said Vytautas Sinius, CEO of Šiaulių Bankas.

According to V. Sinius, the new fund is a unique financial instrument designed to attract private funding for renovation not only in Lithuania but also in Europe. The structure of this fund allows to obtain significant synergies – by attracting private capital to increase the state funds allocated for funding renovation projects up to 5 times.

The fund plans to renovate 600 old apartment buildings improving the living conditions of 16,000 households. The project is expected to save 200 gigawatt hours (GWh) of heat and about 50,000 tons of carbon dioxide annually. Renovation of old apartment buildings can significantly reduce the consumption of energy resources and strengthen Lithuania’s energy independence.

Lithuania’s long-term renovation strategy envisages the renovation of most old apartment buildings by 2050, of which as many as 66% are in energy classes D and lower. The strategy aims to reduce primary energy consumption by 60% and eliminate the carbon footprint.

Šiaulių Bankas, in cooperation with the EIB, has been participating in the modernization programs of apartment buildings for more than ten years and occupies more than 60% of this market. During this period, modernization loans were signed for more than 720 million euros (of which more than 520 million euros are own funds of Šiaulių Bankas), and the bank has provided funding to 2,380 apartment buildings.

Additional information:
Monika Rožytė
Lead of Communication Group
+370 686 79234, monika.rozyte@sb.lt