On 13 December 2013, the Ministry of Finance of the Republic of Lithuania (hereinafter, the Ministry of Finance) signed a state guarantee agreement with the European Investment Bank (hereinafter, the EIB) regarding the loan of EUR 81 million (LTL 280 million) to be given by the EIB to AB Klaipedos Nafta (hereinafter, the Company). The state guarantee agreement secures the obligations of the Company to the EIB according to the credit facility agreement entered for a term up to 20 years on 9 July 2013 (hereinafter, the Agreement) for partial financing of the liquefied natural gas terminal (hereinafter, the LNGT) project. The Company will be able to borrow up to EUR 87 million (LTL 300 million) under the Agreement in total, upon grant of the remaining amount of guarantee. In this way, the EIB will finance up to 50% of funds related with the implementation of the LNGT project under the Agreement.
The state guarantee has been granted after fulfilment of all the conditions, specified in Resolution No. XII-479 of the Seimas of the Republic of Lithuania Regarding granting of the state guarantee to the European Investment Bank, dated 2 July 2013: the Company mortgaged (inter alia) all future assets that will be created during the LNGT project and that the Company will become the owner of by developing and completing the LNGT project, for the benefit of the Ministry of Finance (the state), paid a guarantee fee in the amount of EUR 81,093.61 and received a confirmation from the European Commission that the granted state guarantee is state aid compatible with the internal market.
The Company announced about the conclusion of the Agreement in the Company's notification on material event, dated 9 July 2013, and about fulfilment of the conditions precedent in the Company's notifications on material event, dated 20 November 2013 and 5 December 2013.
