INFRASTRUCTURE CO-FINANCING LOAN HEDGING FACILITY

cancelled

A US$ 6.3 million cross-currency options and swaps line with a tenor of up to fifteen years to the Republic of Lithuania to hedge Yen/US$ exchange risk arising from co-financing by the Export-Import Bank of Japan (JEXIM) of three infrastructure projects funded by the EBRD: Via Baltica and Lithuania Road Project, the Lithuanian Transport Project and the Lithuanian Telecom Development Project. Project objectives: The facility will allow the Republic of Lithuania to hedge short-term and long-term exposure to Yen/US$ rate fluctuations that may lead to a funding shortfall or increased funding cost in US$ terms for the client via one or a series of cross-currency options and swaps. The facility will encourage better assets/liabilities management on the part of the client and will contribute towards a successful implementation of the infrastructure projects financed by the EBRD. Republic of Lithuania. A hedging line to convert client's Yen exposure into a US$ exposure via one or a series of cross-currency options and swaps. Total EBRD exposure will not exceed US$ 6.3 million (ECU 5.7 million equivalent). C/0: The project does not require an environmental analysis or an environmental audit. Environmental issues associated with the three infrastructure projects in question have already been addressed through the EBRD's direct involvement in these projects as a lender. None