The second €200 million multi-apartment buildings modernization fund launches

On March 21, 2024, the SB Modernization Fund 2 established to finance the renovation of multi-apartment buildings started operations. UAB SB Modernization Fund 2 a subsidiary of Šiauliu Bankas signed financing agreements with the European Investment Bank (EIB) acting as Lithuanian national funds manager, Swedbank, the European Bank for Reconstruction and Development (EBRD), Šiauliu Bankas and SB Asset Management, an asset management company of Šiauliu Bankas Group.

The €200 million fund is planned to finance the renovation (modernization) of up to 300 apartment buildings in Lithuania, reducing carbon footprint and improving conditions of about 10 thousand households.

"The SB Modernization Fund is unique in that its resources have been mobilized by international and Lithuanian financial institutions, and the benefits will be felt by all – the quality of life of thousands of residents will improve, heating costs will be reduced, less CO2 will be emitted into the environment, and the business sector involved in the modernization of apartment buildings will be strengthened. In this way, we will all contribute to a more sustainable and beautiful Lithuania.  The Lithuanian renovation financing model is an example for other countries that are tackling similar problems," says Vytautas Sinius, CEO of Šiauliu Bankas.

Šiauliu Bankas, the leader in apartment renovation financing in the country, is the founder of the fund and the administrator of renovation loans, while SB Modernization Fund 2 acts as the legal manager.

The first €275 million SB Modernization Fund was established in 2022, has been successfully disbursed and has already financed the renovation of 395 apartment buildings.

Šiauliu Bankas has a 65 % share in the Lithuanian multi-apartment modernization financing market and has been involved in multi-apartment modernization programmes in cooperation with the EIB for over 12 years. During this period, more than €1 billion of modernization loans have been disbursed and more than 2,800 multi-apartment buildings modernization projects have been financed.

Lithuania's long-term renovation strategy envisages renovating most old apartment buildings by 2050, two-thirds of which are of energy class D or lower. The strategy aims to reduce primary energy consumption by 60 %.

Additional information:
Tomas Varenbergas
Head of Investment Management Division
tomas.varenbergas@sb.lt