Publish Date : 07-Jul-2017
The European Investment Bank (EIB) has pledged to invest EUR 20m in the EUR 100m BaltCap Infrastructure Fund, which funds infrastructure development across Lithuania, Latvia and Estonia.
The Fund had been launched by the region's largest private equity and venture capital investor, BaltCap.
The EIB support has the backing of the European Fund for Strategic Investments (EFSI), the central pillar of the European Commission's Investment Plan for Europe, the so-called "Juncker Plan", launched for overcoming existing market gaps and mobilizing private investment in the EU.
The BaltCap Infrastructure Fund will mainly aim to provide development capital for transport, energy and energy efficiency infrastructure projects in the Baltic States. The Funds investment plan is based on the highest environmental, social and governance standards and environment change mitigation criteria.
The Fund is especially targeting equity investments in energy infrastructure projects: renewable power production like wind, solar and biomass, and energy efficiency projects like public lighting.
EIB Vice-President Ambroise Fayolle, whose responsibilities include EFSI, stated: Mobilising private financing for strategic investments is the main goal of EFSI, and we therefore welcome the cooperation with the BaltCap Infrastructure Fund as it is the first infrastructure fund in the Baltics with the goal of catalysing private investors to finance infrastructure projects. This Fund is an answer to the rising investment needs in the transport, energy efficiency, and renewable energy sectors in the region. Particularly, it addresses the continuing and potentially growing
demand for equity capital for the implementation of infrastructure projects. It thus encourages economic growth by promoting the competitiveness of the Baltic region and improving the business environment. What is equally important, the Fund will create new jobs and by its focus on renewable energy and energy efficiency significantly contribute to the climate change agenda.
Lithuanian Minister of Finance Vilius Sapoka noted: "As one of the Governors of the European Investment Bank, I am highly delighted with this investment attracted to our region. I believe that this alternative source of financing will not only contribute to the promotion of the Lithuanian economy and enhancement of its competitiveness as well as international, institutional and private investment growth but will also positively affect the further development of private and venture capital markets in the Baltic region, strengthening the partnership and cooperation between the Baltic States."
European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, stated: "Investment in infrastructure in Europe is improving, but we still need to do more. This agreement to support the BaltCap Infrastructure Fund is a positive example of what we can do through the EFSI in order to mobilise such investments. I am particularly pleased that this agreement will support projects involving energy infrastructure, renewable energy and energy efficiency. By supporting investments in these sectors, we are helping to lay the foundation for future economic growth."
ar nas Stepukonis, BaltCap Infrastructure Fund partner, added: Infrastructure development is one of the key priority areas for the region to improve its competitiveness and independence. The Baltic countries are facing an infrastructure funding gap of EUR 6bn over the next five years, which is expected to become even larger after the 2014-2020 EU funding programme. Physical infrastructure such as electricity, heating, railways, roads, ports and airports suffer from a substantial deficit in terms of capacities and efficiencies. Mr Stepukonis added concerning the purpose of launching a new fund: With strong support from international financial institutions and local pension funds we are able to address the infrastructure funding gap and help Lithuania, Latvia and Estonia to realise their infrastructure investment programmes. This is the first time in the region that local pension fund assets will be deployed to develop infrastructure for future generations.
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