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COBALT advised Citadele bank and European Bank for Reconstruction and Development on a long-term loan to AB Vilniaus baldai

2019-06-27

COBALT advises Citadele bank in Lithuania and the European Bank for Reconstruction and Development (EBRD) on a 38.7 MEUR long-term loan  public limited company Vilniaus baldai.

The loan proceeds will be used by Vilniaus baldai for the construction of a new and ultra-modern factory that will replace existing production facilities and help toconcentrate activities in one place – in Guopstos village in Trakai district. This will make the production process more efficient. The investment will also help to significantly reduce carbon emissions, energy consumption and solid waste production.

The new facility has been designed in line with the industry’s best standards and practices and in close cooperation with IKEA, the company’s main customer for more than two decades. It will allow Vilniaus Baldai not only to increase capacity, but also to enhance product quality and meet growing demand.

Matti Hyyrynen, Head of Baltics at the EBRD, commented on the transaction as follows: “We are always happy to support the expansion of thriving businesses such as Vilniaus Baldai. The company’s focus on efficiency improvements will contribute to the reduction of environmental damage while also allowing them to grow. Supporting the development of the green economy in the Baltic states is a key priority for the EBRD, and we are happy to partner with Citadele in the pursuit of this goal.” 

COBALT team advises Citadele bank and EBRD on all financing issues. COBALT has conducted a legal due diligence, prepares and reviews contracts and other related documents, provides general advice on funding. The team consists of COBALT Associate Partner Eva Suduiko and Senior Associate Lina Taletavičiūtė-Misiūnienė.