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On 20 June 2013, the Government of the Republic of Lithuania inter alia decided to approve of the draft resolution of the Seimas of the Republic of Lithuania (hereinafter, the Seimas) “On granting state guarantee to the European Investment Bank” and to present it to the Seimas. According to the draft resolution, it is intended to grant the state guarantee in the amount of EUR 81,093,605 (LTL 280 million) for the loan to be taken by AB Klaipėdos Nafta (hereinafter, the Company) from the European Investment Bank (hereinafter, the EIB), as the Company seeks to borrow this respective amount from the EIB. On 4 June 2013 EIB has approved the loan for the Company for up to EUR 87 million (LTL 300 million). If the above-mentioned draft resolution of the Seimas is adopted by the Seimas, it would resolve: 1. To grant state guarantee to the EIB for the loan in the amount of EUR 81,093,605 (LTL 280 million) granted to the Company for the period up to 20 years at the interest rate set by the EIB for financing the investment project “Liquefied Natural Gas Terminal” (hereinafter, the LNGT), the state assuming guarantee obligations regarding repayment of the loan of EUR 81,093,605 (LTL 280 million) and payment of interest. 2. To establish that the state guarantee regarding the above-mentioned loan will be also valid if: 2.1. the LNGT project implemented by the Company is transferred and the LNGT activity performed by it is moved to a subsidiary directly 100 percent controlled by the Company; 2.2. all the rights and obligations of the Company in connection with the implementation of the LNGT project and LNGT activity are transferred to the said subsidiary; 2.3. the Republic of Lithuania maintains at least 67 percent of the shares of the Company and the Company maintains direct or indirect control over 100 percent of the shares of the subsidiary specified in paragraph 2.1 above throughout the entire period of the loan specified in paragraph 1. 3. To establish that the state guarantee cannot be signed until: 3.1. the Company mortgages/pledges future real property of LNGT and concurrently related items, i.e. LNGT link and its technologic commodity, which will be created in the future or which will come into the ownership of the Company or the subsidiary specified in paragraph 2.1 above in the future, upon the implementation of the LNGT investment project, by conditional mortgage (primary pledge) to the Ministry of Finance for the amount no less than 100 percent of the loan specified in paragraph 1 in order to secure the fulfilment of contractual obligations; 3.2. the Company pays a guarantee fee equal to 0.1 percent of the loan amount specified in paragraph 1; 3.3. a confirmation is not received from the European Commission that the state guarantee to be granted to the EIB is not regarded as state aid provided for in Article 107(1) of the Treaty on the Functioning of the European Union or is regarded as state aid compatible with the internal market according to Article 107(3) of the Treaty. |
Mantas Bartuška, Director of the Finance and Administration Department, +370 46 391 763