The developer of Phase II, Part A of the Rūdninkai Military Campus project, Rudina, has signed loan agreements with the European Investment Bank (EIB) and Swedbank: each institution is providing a loan of EUR 100.37 million. Rudina is indirectly managed by the INVL fund INVL Defence Infrastructure Fund I, together with construction companies Conres and Fegda.

“This project is an excellent example of how the European Union, by supporting critical infrastructure, can strengthen its role in security and defence,” said EIB Vice-President Karl Nehammer. “The EIB is proud to contribute to the development of the Rūdninkai Military Campus, which will strengthen the permanent presence of allies and increase security on the eastern flank of the EU. Together with our partners, we are mobilising public and private financing for projects that are essential to Europe’s resilience and stability.”

“A strong economy is impossible without security, and security today requires long-term investment. As the largest financier in the region, Swedbank actively contributes to projects that strengthen Lithuania’s resilience and create the conditions for sustainable economic growth. Swedbank’s EUR 100.37 million financing for the infrastructure of the Rūdninkai Military Campus will help implement a strategically important project that strengthens the country’s defence capabilities. In the long term, it is security that creates an environment in which investment, business and people’s confidence in the future can grow,” said Inga Skisaker, Head of Swedbank in Lithuania.

To secure the financing, the construction partners of the consortium, Conres and Fegda, successfully completed the required international due diligence process, which confirmed their experience, technological capabilities and legal readiness to implement the project.

Financing Fully Secured

With the EIB and Swedbank loans secured, the agreement between Rudina and the Ministry of National Defence of the Republic of Lithuania has fully entered into force. The full entry into force of the agreement allows the next steps to be taken: INVL is beginning to call investors’ capital into the fund, while the construction companies Conres and Fegda are starting full-scale construction in the project area, where they had been carrying out preparatory works since January.

“This project is an example of how public sector needs, private capital and international financial institutions can come together for a higher purpose – the security of the state and the region. The financing stage completed today allows us to move on to the next important step – developing, on time and to a high standard, the infrastructure needed for the permanent presence of the German brigade in Lithuania,” said Andrius Načajus, CEO of INVL Asset Management.

The military infrastructure being developed for the German brigade at the Rūdninkai training area is the largest military infrastructure project in the history of independent Lithuania. It is a strategically important project for strengthening NATO’s eastern flank.

Phase II, Part A of the project covers construction works in an area of 52 hectares. A total of 27 buildings adapted to military needs will be constructed there, with a combined area of almost 94,000 square metres. The area will include a parade ground, areas for vehicles and military equipment, a helicopter zone and other structures.