Lithuania. UAB Lidl Lietuva
| Date of agreement: | 07 Nov 2018 |
|---|---|
| Country: | Lithuania |
| Customer: | UAB Lidl Lietuva |
| Amount in EUR: | EUR 50 million |
| Maturity: | 10 years |
| NACE sector / loan type: | Construction |
Financing from NIB Environmental Bond proceeds
NEB-eligible share: 8%
NEB category: Green buildings
Amount disbursed: EUR 4 million
This project has been financed with the proceeds of NEBs issued under the previous framework
Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds
Project
The loan has been provided to finance the expansion of Lidl’s network of stores in Lithuania for the years 2017–2019.
Lidl entered the Lithuanian grocery market in June 2016. At year-end 2017, Lidl was operating 35 stores and one warehouse in the country and had a market share of 6.5% of the Lithuanian grocery retail market. Lidl is planning to continue its expansion in Lithuania in the coming years.
All Lidl stores in Lithuania, as well as the logistics centre in Kaunas, have been certified under the EDGE system for environmentally efficient buildings, which was developed by the IFC, a member of the World Bank Group.
The Lidl chain is part of the Germany-based Schwarz Group. The Schwarz Group, with the grocery retail chains Lidl and Kaufland, is Europes largest grocery retailer in terms of sales. Lidl has over 10,000 stores in 29 European countries and the USA.
Fulfilment of NIB's mandate
Productivity:
The expansion is in line with Lidl’s growth strategy in the Baltic countries, which has put competitive pressure on the Lithuanian grocery market. The expansion has the potential to create more than 650 new jobs and improve labour productivity. As food products account for a significant share of Lithuanians’ household expenditures, a reduction of price levels induced by intensified competition is expected to have an effect on households’ disposable income.
Environment:
The investments in the store network during 2017–2019 include the certification of all 41 currently existing stores and the Kaunas logistics centre according to the EDGE green building certification system. Lidl is applying energy efficiency measures, which include automated building control systems and heat recovery in the ventilation system.
Sustainability summary
The construction of grocery stores has limited potential for negative environmental impact. Lidl is focused on sustainability and improving the environmental performance of its operations, especially with regard to energy efficiency.
