Investment & Fund Management
they entered into a landmark guarantee agreement with the European Investment
Full Credential Description
RATO credit union faced a significant challenge in providing accessible financing for sustainable projects in Lithuania. To address this issue, they entered into a landmark guarantee agreement with the European Investment Fund (EIF) under the InvestEU program, which unlocked 20 million in new financing specifically aimed at supporting climate change mitigation and green innovation. This initiative was designed to enhance funding availability for sectors such as renewable energy, energy-efficient buildings, and clean transport.
The tailored solution provided by the EIF allowed RATO credit union to offer more favorable loan conditions to individuals and businesses. This included reduced interest rates and lower collateral requirements, which significantly expanded access to funding for green initiatives. The Chairman of the Board of RATO credit union, Vytenis Maiulis, highlighted that this agreement marked a major milestone for their organization, enabling them to offer tangible benefits to clients through lower-cost loans and more flexible terms.
As a result of this initiative, loans under the InvestEU guarantee became available for a variety of sustainable projects, including renewable energy production, energy-efficient building renovations, and low-emission transport solutions. The program supports a wide range of applicants, including individuals, SMEs, and housing associations, with loan terms ranging from one to twelve years. By making sustainable financing more accessible, RATO credit union not only helps clients reduce energy costs and lower their climate impact but also contributes to unlocking long-term value for the economy, environment, and society.