Luminor Bank is lending EUR 28 million to the military town project being built in Šiauliai, which is being implemented by a company belonging to the Eika group. This financing is one of the most important success factors in the initial phase of the project. The project is being implemented in the format of a public-private partnership (PPP) and the company belonging to the Eika group undertakes to build the necessary infrastructure within three years at its own expense and then administer it for 12 years, receiving remuneration for it.
“We have cooperated with Eika before, but this is the first project of this scale implemented by them that we are financing. It is unusual in everything – in its purpose, format and significance for the security of all of us. The increasingly popular public-private partnership in the field of national defense and security is like glue for the unity of individual groups in society in achieving a common goal. We are honored to become part of this very significant project, especially since by ensuring the financing of such projects, we ease the burden on the state budget, the funds of which can be used to solve urgent problems,” said Gediminas Kesminas, head of real estate financing projects at Luminor.
According to Domas Dargis, CEO of Eika, Luminor Bank has been a partner since the very beginning of the project. “The bank was there when needed, working promptly and flexibly. There is not much experience in the market in financing PPP projects, so mutual listening and coordination were important support for our own smooth work. Even in a changing market, we managed to successfully agree on the concentration and now we are moving forward with firm steps,” says D. Dargis.
The Žemaitija Brigade Kunigaikštis Margiris Infantry Battalion will be located in the town that will be built on an area of 7.8 hectares in Šiauliai. Administrative and special-purpose buildings are planned in the territory: barracks, a canteen, headquarters, a medical station, and sports facilities and fields are planned. Technical buildings will also be built: warehouses, garages, a gas station, a car wash, a shelter for technicians, as well as formations and technical fields, and parking lots. The construction of the military town began in October 2022, and the project is being implemented by the companies “Partnerystės projektai keturi” and “Samogitia miestelis” owned by “Eika”.
It was previously announced that UAB “Partnerystės projektai keturi” also issued a three-year bond issue worth EUR 8 million to finance this project. Luminor Bank organized the distribution of this issue, which is intended to be listed on the Nasdaq stock exchange.