Energy, EU – Baltic States, Financial Services, Gas, Legislation, Lithuania, Loan

The order shall come into force on the next day as of its official publishing in the official gazette Valstybes Zinios.

Approval of the Special Plan shall allow the company to start execution of design and construction works of the liquefied natural gas terminal facilities.

Lithuania's State Loan Commission adopted a decision to approve to grant to the European Investment Bank (EIB) a state guarantee securing monetary obligations of Klaipedos Nafta, arising out of the credit agreement (up to 87 million euros (up to 300 million litas)) to be entered with EIB for the implementation of the project of liquefied natural gas terminal.

The proposed amount of a state guarantee is 81,093,605 euros (280 million litas).

The commission also adopted a decision to propose to oblige the company to mortgage future immovable assets together with its inseparable appurtenance (i.e. connections of the liquefied natural gas terminal and its technological appurtenance) which value is not less than 100% of the loan to be granted under the credit agreement with EIB.

The respective mortgage shall secure interest of the state under the state guarantee issued to EIB.

Issue of a state guarantee is one of the conditions precedents to disburse the first tranche under the credit agreement.