Siauliu Bankas credit line

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The proposed project will give Šiaulių Bankas (“SB”) access for the first time to the international syndicated debt market. The loan will improve the bank’s asset-liability maturity structure and diversify its funding base enabling SB to expand its lending activity and implement its business plan. The loan funds will be used to provide medium term loans to SB’s private sector corporate customers, which are mostly SMEs. The proposed project will have a positive impact on the Lithuanian economy by supporting the development and expansion of a regionally strong bank that is focused on servicing SMEs, and by providing better access to medium-term financing for local companies. With domestic credit to private sector share of GDP at 19.9%, the country’s banking sector intermediation level is lower than the Central European average (31.8%). The proposed project will also increase financial intermediation of the banking sector of Lithuania, especially in the regions outside the capital city, which form the main geographical business area of SB. In addition, the project will serve as an introduction of SB to international syndicated debt markets paving the way for the bank’s raising term funding independently in the future. SB was established in 1992 as a regional bank based in Lithuania’s forth largest town of Šiauliai, servicing the northern region of Lithuania. From its origins in Šiauliai region the bank has now expanded to cover the whole Lithuania being represented by a network of 43 branches in 25 cities. SB has grown steadily since 2000. It has an overall market share by total assets of 3%, while its market share in servicing SMEs is estimated at 30% in Siauliai region and at 15% overall in Lithuania. Senior debt for on-lending to private sector corporate customers in the aggregate amount of up to EUR 12 million with an A/B loan structure, B loan to be syndicated. Up to EUR 12 million. SB is required to apply environmental procedures in accordance with EBRD’s Environmental Procedures for Local Banks (including the Environmental Referral List and Exclusion List). In implementing these procedures SB will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements. None. Mr Donatas Savickas AB Šiauliu bankas 149 Tilžės Str., Šiauliai Lithuania Email: d.savickas@sb.lt Phone: +370 41 595602 Fax: +370 41 430774