EBRD backs EUR 25m green bond by Lithuanian renewables co AEI

Lithuanian fund and renewable energy developer UAB Atsinaujinancios Energetikos Investicijos (AEI) has secured an investment from the European Bank for Reconstruction and Development (EBRD) as part of a EUR-25-million (USD 28.3m) green bond issuance.

The EBRD said on Tuesday that it invested EUR 5 million in what was the first tranche of a EUR-100-million AEI Green Bond Framework, to be listed on the Nasdaq Vilnius Stock Exchange.

The proceeds will fund the construction of wind projects in Lithuania and solar projects in Poland.

AEI was established in December 2020 by Lithuanian investment manager Lords LB Asset Management. The renewable fund has a 68.1-MW operating portfolio of solar assets in Poland and Lithuania. AEI targets the construction of a project pipeline of nearly ten times that size between 2022 and 2024.

The move by EBRD is among its first bond investments into a renewables developer at the holding company level, building on traditional project financing at the asset level, the bank said.

The four-year green bond issue, at an annual 5% coupon rate, was mainly channelled through Luminor bank and involved subscriptions from eight other institutional investors, AEI legal advisor Sorainen said.

(EUR 1 = USD 1.131)

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