Seen as heralding a new era in the country’s renewables sector, the venture fund took part in an $8.6 million (€6 million) investment round that will support UAB Lignoterma’s development of a 26 MW thermo power plant.
In a statement, Lignoterma said it will use biomass for the production of the plant and follow the highest environmental standards in its operations.
LitCapital was established in cooperation with the European Investment Fund (EIF) in 2010, with the aim of investing in small- to medium-sized enterprises in Lithuania.
Just last month the EIF expanded on its commitment to the Baltic nation by signing a guarantee agreement with Nordea Bank. The agreement allows the bank to provide up to $72.4 million (€50 million) of new loans to Lithuanian small and medium-sized enterprises.
The agreement signed by the EIF and Nordea Bank brings a new instrument, the First Loss Portfolio Guarantee to the Lithuanian market. The product provides additional finance to SMEs and help to promote entrepreneurship. The guarantee is implemented under the Joint European Resources for Micro to Medium Enterprises initiative, financed from EU Structural Funds.
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