The bonds planned to be distributed by UAB Valstybės Investicinis Kapitalas this year will be guaranteed by the state. On Wednesday, the Government approved the Ministry of Finance’s proposal to provide a state guarantee to the company for 10-year debt securities with a total value of up to EUR 54.5 million.
The funds will be directed to financing the artillery ammunition plant being built by UAB Rheinmetall Defence Lietuva. UAB Valstybės Investicinis Kapitalas is an indirect participant in the artillery ammunition plant project in Lithuania. Bonds of this type for investments in the defence industry are expected to be the first of their kind in the Baltic and Nordic countries.
In early August, UAB Valstybės Investicinis Kapitalas announced the renewal of its EUR 400 million medium-term bond programme, which will be allocated to investments in the Lithuanian defence and security industry. To date, the company has issued debt securities totaling EUR 100 million.