Funding strategy​

Read about our short-term and long-term funding to ensure the delivery and efficiency of our investment programme.

Funding strategy​

The objective of Ignitis Group's financing strategy is to ensure the security of the financing and cash resources of the Group companies by managing cash resources and financial liabilities in such a way as to ensure the continuity of the Group's existing activities and to allow for their expansion.

Ignitis Group is committed to maintain financial discipline and its credit rating at ‘BBB’ or above throughout the 2022–2025 period by employing an efficient financing strategy and retaining target leverage (Net debt / Adjusted EBITDA < 5.0x).

Short-term funding

  • Includes credit lines and overdrafts from local and international banks
  • The Group utilises a cash pooling platform for efficient cash management between entities

Long-term funding

  • Primarily bonds with maturities >7 years
  • Long-term loans from local, international and investment banks. Projects are financed 60–75% at the asset level, where possible. The target duration of long-term loans are at least 10 years

Liquidity reserve, EUR

Liquidity reserve