Financials & Investments

Ellex Valiunas advises leading financial institutions and investment companies on the most significant finance transactions. We enjoy a heavy volume of banking-related work, including commercial lending, syndicated loans, refinancing and portfolio restructuring. Our experts assist clients seeking to operate on a cross-border basis to comply with EU passporting and general good provisions or, alternatively, we help clients to structure the nature of their investment services in order to comply with applicable restrictions or requirements.
Key projects in the field

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Giedrius Stasevičius

Partner

Co-head of Banking and Finance practice
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Ieva Dosinaitė

Partner

Co-head of Banking and Finance practice
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What's new in the field
The Impact of Brexit on the Financial Market Participants
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Key projects in the field

The Impact of Brexit on the Financial Market Participants
2021-02-08

Access to the EU single market and the free movement of the capital provide significant benefits for the EU-based financial market participants, i.e. with merely one single license issued in one Member State the financial market participant can freely operate in the whole EU market.
 
Taking advantage of such a benefit many fintech players were enabled to provide financial services across the whole EU from their one establishment in the UK.
 
However, the UK exit from the EU cut off access of the UK licensed market participants to the EU single market and, unfortunately, the UK-EU Trade and Cooperation Agreement does little to facilitate the UK based financial market participants’ access to the market. Therefore, from the 1st of January 2021 all financial market participants licensed in the UK lost their rights to offer their services to EU customers.
 
What has been done yet, the two sides have agreed to issue a Memorandum of Understanding regarding financial services regulation, financial stability and equivalence by the end of March 2021 that will give further clarity on the equivalence rules.
 
Equivalence refers to a decision by one state to recognise another state’s legal requirements for regulating a good or service; in practice, this means that a financial market participant would need only to comply with one set of requirements in both states and could access that state’s market pursuant to the scope given by that equivalence decision. Therefore, equivalence decision made by the EU would allow the UK to retain some rights to access the EU market.
 
However, it should also be noted that equivalence is not a substitute for the passporting rights created for the EU based financial market participants. Equivalence covers fewer services and allows operation in fewer areas, consequently it will not allow full access to the EU market for the UK based financial market participants.
 
Until today, European Commission has only granted time-limited equivalence decisions allowing UK central counterparties and central securities depositories market access in the EU.
 
Taking into account the uncertainty of the future equivalence decision and limited scope of operational rights granted with an equivalence, the UK based financial market participants wishing to continue the provision of financial services in the EU have to consider other market access measures, including:
  • setting-up a branch in a Member State – although this will limit the right to provide financial services only in the market of that particular Member State; or
  • establishing a fully authorized subsidiary in the Member State and passport its license across the EU.
Ellex in Lithuania advised Edenred SA on acquisition of EBV Finance shares
2020-02-26
 
Ellex advised Edenred SA, a France-based EURONEXT-listed multinational corporation and a global leader in payment solutions for the working world, on acquisition of 60 percent of shares in EBV Finance, a major player in Northern and Eastern European market of tax refunds services for transportation companies.
 
Edenred Group will transfer to EBV Finance the assets of its Danish subsidiary Nikosax, which specializes in the same field as EBV Finance. Following the transaction, Edenred owns 60% of the combined entity.
 
The transaction will enable Edenred to leverage not only scale effects and operating synergies, but also EBV Finance’s expertise and positioning in a buoyant market. For its part, EBV Finance will be able to take advantage of Edenred’s Europe-wide footprint and broad client base in the region. The deal will lay a foundation to create Europe’s No.1 company in this sector.
 
The transaction value is not disclosed.
 
The deal also included EBV Finance subsidiaries in Bulgaria, Poland, Romania, Spain and Estonia. Ellex acted as buyer’s main international adviser and led the work of local law firms in their respective jurisdictions.
 
Project team consist of Ellex in Lithuania partner Paulius Gruodis, senior partner Ruta Armone, senior associate Aleksandr Asovskij, experts Ilona Janciauskaite and Gintaras Balcius, associates Augustinas Macionis and Diana Cerkeviciute, junior associate Tomas Balcytis and Ellex in Estonia associate Reet Saks.
 
Ellex was assisted by law companies Penkov Markov & Partners in Bulgaria, Wardysnki & Partners in Poland, NNDKP in Romania and Uria Menendez in Spain.
Ellex Valiunas assisted Baltic Sea Properties in obtaining refinancing loan at bank Luminor for EUR 23.4 million
25-04-2019
 
The law firm Ellex Valiunas assisted Norwegian real estate development company Baltic Sea Properties in obtaining refinancing loan at bank Luminor for EUR 23.4 million. The loan will be used to refinance 23 stores in Lithuania that are leased by the retail chain Norfa and the logistics centre where Rhenus Logistics is located.

According to the signed agreement, Luminor refinances financial liabilities of Baltic Sea Properties held in another bank in Lithuania and provides financing for other business needs.

According to the data of the end of 2018, the total value of commercial premises owned and operated by Baltic Sea Properties amounted to approximately EUR 104 mln. The company’s income from the lease amounted to EUR 7.67 mln. The company’s portfolio consists of 101.000 sq. m of commercial premises. Baltic Sea Properties is a listed company traded on Merkur Markets, Oslo Stock Exchange.

Ellex Valiunas associate partner Julija Nikitaravičienė assisted Baltic Sea Properties in negotiating refinancing and loan documentation.

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