Lithuania. SB Modernizavimo Fondas UAB

Date of agreement:25 Apr 2022
Customer:SB Modernizavimo Fondas UAB
Amount in EUR:EUR 50 million
Maturity:25 years
NACE sector / loan type:Real estate activities

This loan contributes to climate change mitigation: 100%

Financing from NIB Environmental Bond proceeds

NEB-eligible share: 100%

NEB category: Energy efficiency

Amount disbursed: EUR 33.3 million

Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds


The loan will finance the SB Modernisation Fund used by homeowners to modernise their properties. The fund is part of a state-wide housing renovation programme for improving the energy efficiency of multi-family apartments.

Renovation projects that can achieve energy savings of at least 40% and energy class C after completion are eligible for the programme. Based on the previous results, the renovation can bring energy savings of up to 70%.

The substantial energy savings and the long-term financing structure are aimed at making the project costs neutral to the homeowners, meaning that the reduced energy costs will match their loan costs.

The SB Modernisation Fund amounts to EUR 275 million and envisages the renovation of 600 apartment buildings, benefiting around 16,000 households. It is supported by a state grant and other financial mechanisms from Lithuania, European structural and investment funds (ESIF), as well as other lenders including the European Investment Bank and the Council of Europe Development Bank.

The Fund is a subsidiary of Šiaulių Bankas. It is the largest commercial bank with Lithuanian capital and the country’s leading renovation financier, with 2,380 buildings already financed. Šiaulių Bankas was established and listed on Nasdaq Vilnius in 1992.

Fulfilment of NIB's mandate


The unrenovated buildings in Lithuania are energy inefficient, and a standard renovation can reduce energy consumption and heating costs considerably. Based on the evidence from the previous outcomes, renovation can bring energy savings of up to 70%, with the average indicator from the programme being 63%.

Households in Lithuania spend a larger part of their income on energy than the EU average. High energy costs affect the disposable income of households, especially those with lower incomes, potentially putting them at risk of financial stress. Renovation helps mitigate this through reduced energy costs.

Renovation projects improve the quality of ventilation and soundproofing, leading to positive health and wellbeing effects for the tenants. Moreover, it creates additional temporary economic activity, especially in construction and related sectors.


Lithuania’s long-term renovation strategy aims to transform the existing building stock by 2050. It includes reducing primary energy consumption by 60%, as well as phasing out the use of fossil fuels for energy and eliminating the associated CO2 emissions. Currently, 66% of the building stock in Lithuania is of energy class D or lower. The potential for reducing energy use through the renovation programme is therefore significant.

All renovation projects are evaluated, and only projects that achieve energy savings of at least 40% and energy class C after completion are eligible for financing from the programme.

Since 2013, approximately 3,100 apartment buildings housing some 90,000 flats have been renovated in Lithuania, providing annual energy savings of 800 GWh. Although energy savings associated with renovations can only be reliably assessed afterwards, the previous outcomes and the estimated portfolio indicate anticipated annual energy savings of more than 200 GWh in connection with the project. This would correspond to greenhouse gas savings of approximately 50,000 tons CO2e annually.

Impact indicators in relation to the investments:

  • More than 200 GWh in annual energy savings (NIB’s estimate is based on previous renovation projects)
  • Greenhouse gas savings of approximately 50,000 tons CO2e annually.

Sustainability summary

Renovation projects pose limited sustainability risks.

Press release

NIB finances Lithuania’s housing renovation programme

Press release

NIB finansuoja Lietuvos daugiabučių renovacijos programą

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