IG Kapitalas BESS II

UAB Kybartai bess financing

Project identification number: 9845000909E2CCFD9O44-00000020 

Use of proceeds 
Funds raised during the bond issue will be used to finance the development of a Battery Energy Storage System (BESS) project in Kybartai, developed by the investment group UAB IG Kapitalas. The financing will be allocated to construction works, equipment procurement, and project-related operating expenses. During the second tranche, it is planned to raise € 2.5 M out of the total € 4 M bonds programme. 

During the first tranche of the bond issue, € 1.5 M was raised and used to make the second advance payment to the battery manufacturer CATL. 

The battery park is being developed in Varpučiai village, Vilkaviškis district (Kybartai), in a strategically attractive location. The land plot has direct access and is crossed by a 110 kV overhead transmission line, enabling direct connection to the Litgrid transmission network. The planned capacity of the project is 60 MW, with a storage capacity of 150 MWh (2.5 hours). The project will use advanced and proven technology, including CATL EnerX battery containers, Power Electronics inverters, and an Astor high-voltage transformer. 

The project is already at an advanced development stage – all key permits have been obtained, and a financing agreement has been signed with the National development bank ILTE for a loan of up to € 19.7 M, as well as € 3.1 M in APVA grant, which will be paid upon the completion of the project. 

A highly experienced EPC contractor, UAB WiSo Engineering, has been selected through a competitive process, while project development services are provided by UAB Evecon, one of the leading renewable energy developers in the Baltic region. The main equipment has already been ordered, and construction, development and equipment costs are fixed, reducing the risk of cost overruns and ensuring accurate project budgeting. 

It is expected that the project will reach Ready-to-Build status by mid-June 2026, after which construction works will commence. Revenue generation is planned for early 2027, with full project completion expected in early Q2 2027. 

Once operational, the battery park will generate revenue from electricity price arbitrage and system services. The project will participate in the Nord Pool day-ahead and intraday markets, storing electricity when prices are low and selling it when electricity prices increase, thus benefiting from daily price fluctuations. 

In addition, the battery park will provide balancing services to support grid stability. The demand for such services in Lithuania has significantly increased following synchronization with the continental European grid and disconnection from the BRELL system in 2025. 

The growing need for battery storage is also recognized by Lithuanian institutions, and such projects are supported through APVA grants and financing provided by the National development bank ILTE. 

The bonds will be secured by the first-ranking pledge over 100% of the shares of UAB Kybartai bess financing, owned by UAB IG Kapitalas. Additionally, the bonds will be secured by a first-ranking pledge over all present and future receivables arising from a loan funded by the bond proceeds and granted to Kybartai BESS project. The Loan-to-Cost (LTC) ratio for the project may not exceed 80%. 

It is anticipated that upon maturity, the bonds will be redeemed partly from the APVA grant, which will be paid after project completion, as well as from cash flows generated by the project. 

*Images used in this presentation are for illustrative purposes only and are intended to reflect the vision of the project. 

Project structure 

The total project costs amount to € 31.5 M, of which € 26.4 M relates to construction works, € 3.4 M to development costs (including SPV acquisition, development services, grid capacity guarantees, technical supervision, legal costs, and project management), and € 1.7 M to financing costs during construction and contingency reserve. 

The project will be financed by a € 19.3 M loan from ILTE, € 4 M raised through the bonds issued in tranches via the BeMyBond platform, and € 8.2 M in shareholder funding. In addition, € 3.1 M APVA grant has been secured, to be received after the project completion. 

More detailed information about the capital structure is provided in the Key Investment Information Document.

UAB IG Kapitalas 2024 m. finansinės ataskaitos su auditoriaus išvada

Pagrindinės informacijos apie investiciją dokumentas

The project owner (issuer) is UAB Kybartai bess financing, 100 % owned by UAB IG Kapitalas. UAB IG Kapitalas is a holding company developing projects in the industrial and energy sectors. In 2025 the group generated nearly € 50 M in revenue and € 15 M in EBITDA. 

The group also owns UAB KMT, a well-established metal processing and engineering company that designs and installs loading equipment, manufactures truck bodies, and produces custom metal structures. The company started operations in 2003 as a representative of Palfinger and today works with more than 10 brands and clients across 11 markets. It operates over 6,000 m² of modern production facilities, employs more than 100 specialists, and has completed over 1 000 structural projects. 

The decision by UAB IG Kapitalas to invest in battery storage projects is part of its strategy to expand into the energy sector and benefit from the growing demand for energy storage solutions in Lithuania.

Bonds for the battery park project in Kybartai, 2nd tranche

8.25%

24 months

€ 2 500 000

Low risk

Average amount invested

Investments

Interest return period

Launch date

Time remaining

Use of proceeds & project structure

Project owner

Project location

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