Siauliu Bank - Convertible Senior Loan

signed

The EBRD is providing up to €30 million to Siauliu Bankas, SME focused regional bank, headquartered in Siauliai in northern Lithuania with a country wide branch network. The proposed project comprises a senior convertible loan in two tranches and has a dual objective of supporting financial intermediation and potential future recapitalisation support: the loan will encourage SME and municipal lending while the convertible element incorporated will allow EBRD to promptly address the recapitalisation needs if required. The project aims to promote lending continuity and stability in the banking system. Siauliu Bankas is a well-managed local bank which has a proven track record of working with SMEs through its strong branch network. EBRD’s financing will help to support lending to the real economy in the current difficult economic conditions in Lithuania. By working with a regional bank, the project will also reduce regional income disparities as it will increase banking services and economic activity outside the capital city. Siauliu Bankas is the 6th largest bank in Lithuania with total assets of €590 million and equity of €82 million as of end-March 2009, rated Ba3 by Moody’s. Siauliu Bankas is headquartered in Siauliai in northern Lithuania, operates countrywide and is viewed as one of the leading SME banks in the country. A senior convertible loan in two tranches. Up to €30 million. SB is familiar with EBRD’s environmental requirements from earlier operations with the Bank including the SME credit line. In the context of this equity investment, SB applies EBRD’s Environmental Procedures for Local Banks to the full range of its commercial lending activities, including compliance with EBRD’s Exclusion and Referral List, providing annual environmental reports of all its lending activities to EBRD and requiring all its borrowers to comply, at a minimum, with Lithuania health, safety, environmental and public consultation requirements. None. Mr Donatas Savickas Member of the Board, Deputy Chairman of the Board 149 Tilžės Street Siauliai LT-76348 Lithuania Telephone: +370 41 595 602 Fax: +370 41 430 774 Email: d.savickas@sb.lt Website: www.sb.lt