“Investment in the factory is important for strengthening Lithuania's national defence industry. It will enhance the security of the entire region, reduce our dependence on long supply chains and provide ammunition not only to Lithuanian, but also to other European military forces”, acting Prime-Minister and Minister of Finance Rimantas Šadžius stated.
Bonds of this kind earmarked for investment in the defence industry will be the first in the Baltic and Nordic countries.
The issuer will pay a margin of 0.1% of the amount of the securities issued.
This is a step towards strengthening the country’s defence potential. At the end of June, the Ministry of Finance announced that Lithuania had already attracted almost EUR 1 billion from international financial institutions for defence purposes.
In December last year, State Investment Capital UAB took a strategic decision to invest up to EUR 71.1 million in the artillery ammunition factory of Rheinmetall Defence Lietuva UAB. To date, the company has invested EUR 18.4 million in the project.
A new artillery ammunition factory worth EUR 260-300 million will produce 155 mm gun shells for the Lithuanian and NATO allies' armies. It is planned that a modern factory near Baisogala in Radviliškis district will start operating in 2026, and such an investment will not only strengthen Lithuania's defence capabilities, but also ensure a financial return. It is estimated that State investment capital UAB will start receiving dividends from 2030 onwards.
Last year, State investment capital UAB together with another state-owned company EPSO-G made capital investment in the newly established EPSO-G Invest UAB. Later, this company together with the German defence industry giant Rheinmetall AG and AB Giraitės Armament Factory invested in a joint venture of Rheinmetall Defence Lietuva UAB.
According to the covenant signed in December last year, Rheinmetall AG owns 51%, EPSO-G Invest 48% and AB Giraitės Armament Factory 1% of Rheinmetall Defence Lietuva UAB.
At the beginning of August, State Investment Capital UAB announced an updated medium-term bond programme of EUR 400 million which will be for investment in Lithuania’s defence and security industry. To date, the company has issued debt securities for EUR 100 million.
Additional information:
The Ministry of Finance has already announced that the credit resources of international financial institutions have been successfully used for defence funding – in May this year , the Nordic Investment Bank (NIB) granted a EUR 400 million credit to finance national defence investment in 2025–2027, and on 19 June – the European Investment Bank (EIB) approved a EUR 540 million credit.
The NIB allocated EUR 400 million for 20 years to budget expenditure related to dual-use (civilian and military) infrastructure development, which increases Lithuania's defence capabilities. In addition, the funding will support the development of accommodation, administration and training facilities for the National Infantry Division and the German Brigade.
An EIB loan of EUR 540 million to the military base in Rūdninkai will help to allocate project costs, ease the burden on Lithuanian public finances and companies participating in the initiative under the public-private partnership (PPP). The EIB also provides advisory services to ensure that PPP agreements comply with market standards and best practices.
The Ministry of Finance applied to the EIB for another credit line to finance the State budget expenditure related to the development of dual-use (civilian and military) infrastructure. This unique EIB financial assistance will be very useful for financing other defence projects, such as the Military Campus in Kairiai.
Further cooperation with the NIB on defence investments is also planned.
