Ignitis Group attracted foreign equity investment to Vilnius CHP

The renewables-focused integrated utility Ignitis Group AB has fulfilled a requirement set by the European Commission – which had allocated EUR 138 million in aid for the construction of the Vilnius Cogeneration Power Plant (Vilnius CHP) – by attracting a private investor into the company. The Group signed an agreement with the infrastructure fund Quaero European Infrastructure Fund III, managed by Quaero Capital, for the sale of a 49% stake in the Vilnius CHP owned by Ignitis Group.

The value of the Vilnius CHP’s shares acquired by Quaero Capital amounts to EUR 120 million. The transaction is expected to be completed in the near future, subject to obtaining the necessary approvals from the authorities and fulfilling other conditions set out in the agreement.

Quaero Capital is an independent asset management company headquartered in Geneva, with offices in Paris, Zurich, Luxembourg, and London. It manages EUR 3.8 billion in assets, primarily in energy, water, social, digital, telecommunications, and transport projects across Europe, including the Baltics. Quaero Capital focuses on long-term investments in infrastructure projects, and its investor base consists of institutional investors – pension funds, insurance companies, and the European Investment Bank.

Vilnius CHP, owned by Ignitis Group, is one of the most modern plants of its kind in Europe, capable of simultaneously generating electricity and heat using waste or biomass. It can supply approximately half of Vilnius city’s annual heating demand.

Ignitis Group was advised and represented on the share sale transaction, merger control matters, and compliance with European Union state aid rules by Ellex in Lithuania experts: Ramūnas Petravičius, Karolis Kačerauskas, Andrej Jemeljanov, Šarūnas Keserauskas, Arvydas Grušeckas, and Patricija Mažeikaitė.