Valstybės investicinis kapitalas completes EUR 25 million bond issue strengthening Lithuania’s investment and defence capacity.

Valstybės investicinis kapitalas, UAB has successfully completed a EUR 25 million 4-year bond issue under its updated state guaranteed EUR 400 million Euro Medium Term Note (EMTN) programme. This issue is an important part of the state’s efforts to diversify funding sources and ensure long-term capital access for strategic projects, particularly those related to the defence industry and national security. 

These are the first Nasdaq Defence Bonds under their new European Defence Bonds Framework, and all proceeds will be directed as investments into Rheinmetall Defence amunition factory. 

Each bond has a nominal value of EUR 1,000, with a yield of 3.119%, and will mature on 24 September 2029. The bonds were placed with institutional investors in the Baltic and Nordic States. 

The issue was arranged by Luminor Bank AS Lithuanian branch, which acted as the sole distributor, while our team provided legal services related to the transaction documentation and regulatory compliance. The project was led by our firm’s Associate Partner Eglė Neverbickienė and Senior Associate Eglė Radvilaitė, who prepared and reviewed the bond documentation, ensuring accuracy, exact timing and smooth execution throughout the process, and Partner dr. Karolis Kačerauskas advised on state aid matters and the receipt of State guarantee to secure the bonds. 

Strengthening Lithuania’s capital markets is becoming increasingly important in the context of national security. Across Europe, governments are seeking effective ways to finance defence and infrastructure projects through market mechanisms rather than relying solely on budgetary instruments. Lithuania is emerging as an example of how investment capital can be mobilised to serve national objectives. 

Our firm has been working for several years with state investment structures and defence industry projects, providing comprehensive legal support in the areas of finance, regulation, and public investment. 

This bond issue not only contributes to the state’s financial stability but also sends a clear signal to the international investment community – Lithuania is a reliable, transparent, and strategically minded market.