Category: Lithuania

Cobalt has represented a syndicate of banks including AB SEB Bankas (in Lithuania), Danske Bank A/S (in Denmark), and Nordea Bank AB (in Sweden) in granting a syndicated loan of EUR 60 million to Telia Lietuva. The borrowers were advised by the South African office of Allen & Overy.

According to Cobalt, “the funds will be used to refinance the loan which was granted by the company’s shareholder Telia Company a few years ago to the telecommunications company then named Omnitel. The financing in the amount of EUR 77 million was intended for the development of 4G network.”

The syndicated loan, granted in equal EUR 20 million portions by the three banks, was arranged by SEB Bankas in Lithuania, together with SEB Bankas in Sweden (Skandinaviska Enskilda Banken AB). The maturity of the loan is 5 years.

“This is a major, complex credit transaction, not common in Lithuania, which was arranged by SEB Bankas in compliance with international loan standards (LMA, Loan Market Association),” said Vilius Juzikis, Head of Corporate Banking at SEB Bankas. “Telia Lietuva is a good example for the market how to benefit from the favorable situation and professionally optimize financial liabilities.” 

The Cobalt team was led by Partner Akvile Bosaite.

The Allen & Overy team was led by Partner Michael Duncan and Senior Associate Alex Cockburn.

Motieka & Audzevicius has successfully represented Lithuania’s public non-profit deposit system administration institution Uzstato Sistemos Administratorius before the District Court of Vilnius City.

According to M&A, “the institution manages the entire deposit system in Lithuania, starting with collection of the packaging waste and ending with it being recycled.” The firm reports that, “the dispute arose due to standard conditions of contract between the deposit system administrator and a claimant, a manufacturer of soft drinks and alcoholic beverages. The whole deposit system unites almost 300 manufacturers and importers and only one of them claimed that the contract conditions were resulting in substantial inequality of the parties involved and accordingly, they requested that the provisions of contract be changed. After hearing the arguments of both parties, the Court has rejected the full scope of the claim resulting in the victory of our client.”

According to M&A, “the case is important for the development of the whole deposit system of Lithuania.”

The firm’s team included Partner Ramunas Audzevicius and Associate Edgaras Margevicius.

Sorainen has assisted the Lithuanian Ministry of Finance in issuing ten-year and thirty–year Eurobonds and borrowing EUR 750 million and EUR 550 million respectively.

The ten-year EUR 750 million Eurobond will have the lowest coupon in the country’s history at 0.95%. The Eurobond was issued at a yield of 1.129% and an issue price equal to 98.316% of its face value. Settlement of the Eurobond will take place on May 26, 2017. The maturity date is May 26, 2027.

The thirty-year EUR 550 million Eurobond is the longest in Lithuania’s history in terms of maturity. The bond has a 2.1% coupon. The Eurobond was issued at a yield of 2.188% and an issue price equal to 98.079% of its face value. Settlement of the Eurobond will take place on May 26, 2017, and its maturity date is May 26, 2047.

According to Lithuanian Finance Minister Vilius Sapoka, “the decision to borrow long term was based on the favorable situation in international markets and on our intention to fix low rates of interest. Debt management strategy allowed us to exploit the demand for long term investments. The long-term borrowing will allow us to distribute debt repayment flows evenly and use attractive conditions of financing for a longer time.”

The transaction was lead-managed by BNP Paribas and JP Morgan.

Sorainen Partner Tomas Kontautas and Associate Laura Matukaityte advised the Ministry of Finance on Lithuanian law-related issues.

Sorainen did not reply to our inquiry about counsel for the banks on the issuance.

Editor’s Note: After this article was published Ellex Valiunas announced that it had advised lead managers BNP Paribas and J.P. Morgan on the EUR 1.3 billion Eurobonds issuance. The firm announced that, at 0.95%, the ten-year EUR 750 million Eurobond has the lowest coupon in Lithuania’s history. and that the thirty-year EUR 550 million Eurobond with the 2.10 percent coupon mark is the longest duration to date for the country.

The Ellex Valiunas team consisted of Partner Joana Baublyte-Kulviete, Senior Associate Laurynas Narvydas, and Associate Simona Kisunaite.

Vilgerts is announcing the arrival of Jurate Kugyte at the firm.

Kugyte, who joins as Partner, has more than 17 years of experience. She joins from Tark, Grunte, Sutkiene (now TGS Baltic), which she joined in 2012 following its merger with the Vilnius office of Baltic Legal Solutions, where she had been since 2006. She spent the two years before that as the Head of Legal and EU Law Divisions at Lithuania’s National Consumer Rights Protection Board.

According to Vilgerts, Kugyte “specializes in company law, M&A, banking and finance, and European Union law. Customers especially appreciate [her] enthusiasm, dedication, exceptional experience and high level of professionalism. [She] is a recommended arbitrator at the Vilnius Court of Commercial Arbitration [and is] also the chairperson of the board of the Swedish Chamber of Commerce in Lithuania.”

Sorainen has advised Regus on the lease of office premises with an area of 1,200 square meters at the Park Town business center developed by MG Valda.

According to Sorainen, “Regus is the world’s largest provider of flexible workspace solutions, with a network of 3000 locations in over 1000 towns and cities, across more than 100 countries, serving 2.3 million members. Regus was the first company in Vilnius to offer flexible workspace solutions.”

Regus will lease the whole second floor of the new business center and plans to create over 100 fully equipped workspaces for leasing. 

The Sorainen team was led by Partner Kestutis Adamonis and included Associates Karolis Kunigelis and Ugne Trakymiene.

Leadell Balciunas & Grajauskas — the Lithuanian arm of the Leadell alliance in the Baltics — has announced the opening of a representative office in Brussels, Belgium, led by Associated Partner Kestutis Rudzika.

According to Leadell, “the new office, situated in the heart of the main business and financial district of Brussels, will enable us to offer a wider range of legal services. As part of our strategy, we will focus on international tax, transfer pricing and other cross-border services. The new location will also facilitate the interaction with the European Commission and other EU institutions.”

Ellex Valiunas has assisted Mano Unija, the largest credit union in Lithuania, on its successful application to the Bank of Lithuania for authorization to begin its transformation into a public company holding a bank license.

According to Ellex Valiunas, “this is the end of the first stage of the preparation for banking activity. The next stage is application to the Bank of Lithuania for a bank license.” The firm reports that Mano Unija is, at present, “the only credit union in Lithuania holding the authorization of the Bank of Lithuania to carry out transformation into a bank.”

The Ellex Valiunas team consisted of Partner Gedminas Reciunas, Senior Associate Ausra Brazauskiene, and Associate Arminas Banys.

Cobalt has assisted UAB Mobilus Mokejimai in obtaining an electronic money institution license for restricted activity, enabling it to issue electronic money and provide payment services in Lithuania.

According to Cobalt, “the license will enable the company to offer its private and corporate customers services that allow safe transfer of money in just a few seconds, knowing only the recipient’s phone number. The company will invite customers to create their own accounts and to transfer money to other individuals or to pay for online purchases of goods and services by using the instant payment system.”

According to Cobalt, “creating a favorable regulatory and supervisory environment for the provision of financial services and fostering innovation in the financial sector are among the strategic directions for 2017-2020 of the Bank of Lithuania. Together with other national institutions, the Bank of Lithuania seeks to make Lithuania the center of financial technologies in the Nordic and Baltic region.”

The Cobalt team advising UAB Mobilus Mokejimai was led by Partner Akvile Bosaite.

Motieka & Audzevicius has advised ZSC Techteam and ZeroSum Capital OU on each’s acquisition of 40% of the shares in long-term firm client Finbee — which the firm also represented on the deal.

According to M&A, “Finbee is one of the three active peer to peer platforms in Lithuania.”

Motieka & Audzevicius (M&A) reports that it advised “in all stages of transaction, including performance of due diligence, obtaining of permission for the transaction from the Central Bank of Lithuania, structuring of the transaction, and preparation of all supporting documents.” According to M&A, “we have also assisted the investor and the founders of Finbee, with the flexible solution of governance which was reflected in the transaction documentation.”

Ellex Valiunas has represented the European Bank for Reconstruction and Development with regard to a EUR 50 million loan agreement with Lithuania’s Public Investment Development Agency.

According to Ellex Valiunas, “the purpose of the loan is to finance multi-apartment building modernization projects in Lithuania. This loan agreement is of prime importance for the country as it will speed up multi-apartment building renovation processes and improve the living conditions for the residents of the renovated buildings.”

The firm describes the loan as “the first large EBRD investment in the energy consumption efficiency of multi-apartment buildings in Lithuania.”

The firm’s team consisted of Partner Gediminas Reciunas, Senior Associate Ausra Brazauskiene, and Associate Enrika Tamasauskaite.