NIB supports defence investments in Lithuania to strengthen regional security

9.10.2025 • Press release
Image: Rheinmetall plant in Germany
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  • Lithuanian
  • NIB is investing EUR 6 million in a EUR 25 million, four-year bond issued by UAB Valstybės investicinis kapitalas.
  • The proceeds will finance the construction of an artillery ammunition plant in Lithuania by UAB Rheinmetall Defence LT, a Lithuanian-German joint venture.
  • Once operational – targeted for early-2027 – the Rheinmetall Defence LT plant in Baisogala, Lithuania, will play a significant role in Baltic regional security.

“Large-scale industrial investments of this magnitude are rare in the Baltics. This project combines advanced manufacturing and regional security in a way that strengthens both productivity and resilience, while enhancing Europe’s security of supply and generating long-term economic and social value for Lithuania and the wider Nordic-Baltic region,” says André Küüsvek, NIB President and CEO.

By creating local NATO-standard munitions production, the facility will enhance Lithuania’s position in NATO and EU defence supply chains, reduce reliance on external sources, and provide employment for up to 150 people. The total project cost is estimated at up to EUR 300 million, representing a major addition to Lithuania’s manufacturing sector.

In July 2025, NIB revised its Sustainability Policy Exclusion List to permit the financing of conventional weapons and ammunition. The decision followed a request by the Nordic and Baltic owner governments for NIB to strengthen the region’s security and defence capabilities.

UAB Valstybes investicinis kapitalas is a state-owned investment company established in 2020 by the Republic of Lithuania. Its main role is to manage the Business Support Fund and other instruments aimed at stabilizing the economy, financing medium and large enterprises, and investing in strategic sectors including defence.

NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.

For further information, please contact
Vilius Girkontas, Senior Banker, Country Lead for Lithuania, vilius.girkontas@nib.int
Elīna Neimane, Senior Communications Officer, +358 10 618 0871, elina.neimane@nib.int