NIB invests in MREL-eligible bond in Lithuania

NIB is investing EUR 17 million in a EUR 300 million, 4.25-year MREL-eligible bond issued by  Lithuanian AB Šiaulių bankas. This is NIB Lending’s second purchase of a bond from Šiaulių bankas that meets the minimum requirement for own funds and eligible liabilities (MREL).

Under EU Banking Union regulations, participating banks must meet specific regulatory targets to absorb losses and restore their capital positions, enabling them to continue their economic functions during and after a crisis. MREL is a key tool for this.

The proceeds of this bond issuance will help Šiaulių bankas meet regulatory requirements, diversify its funding base, increase its loss-absorption capacity, and strengthen its resilience. Additionally, it will support the bank’s financing of small and medium-sized enterprises (SMEs).

“NIB’s MREL bond purchase is part of our broader strategy to enhance client value propositions and develop capital markets across the Baltic region. This investment not only supports small businesses financed by Šiaulių bankas throughout the Baltic countries but also aligns with NIB’s commitment to expanding and diversifying the investor base for our partner banks,” says André Küüsvek, NIB President and CEO.

Šiaulių bankas has been a long-term client of NIB, with previous loans supporting SMEs. In March 2022, NIB and the SB Modernisation Fund, a subsidiary of Šiaulių bankas, signed a EUR 50 million loan agreement to finance a nationwide programme aimed at enhancing the energy efficiency of multi-family apartment buildings in Lithuania.

AB Šiaulių bankas was founded in 1992 in the city of Šiauliai and is a leading financial institution in Lithuania. The bank is listed on the Vilnius Stock Exchange.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Ralf Hansson, Senior Banker, Financial Institutions, at +358 10 618 0240, ralf.hansson@nib.int

Arild Moen, Associate Director, Communications, +358 10 618 0496, arild.moen@nib.int