Merko Statyba Secures €372.7M in Lithuanian Defense PPP Deals — AS Merko Ehitus

Event summary

Merko Statyba signed €372.7M in design-and-build contracts for Lithuania's Rūdninkai defense campus (Parts B and C).
AS Kapitel's subsidiary acquired a 70% stake in the PPP project companies, with Merko retaining 30%.
Construction completion is scheduled for Q4 2028, covering 190,000 sqm of buildings and 310,000 sqm of infrastructure.
Financing secured from EIB-led banking consortia (SEB bankas for Part B, Swedbank for Part C).
Transaction does not constitute a significant holding disposal per Nasdaq Tallinn rules.

The big picture

This deal represents a significant expansion of Merko's defense infrastructure portfolio, with AS Kapitel's involvement signaling growing private-sector interest in Baltic military real estate. The €372.7M contract value underscores both the scale of Lithuania's defense modernization efforts and the strategic importance of public-private partnerships in funding such projects. The financing structure—led by European institutions—highlights continued institutional support for regional security infrastructure.

What we're watching

Execution Risk: Whether Merko can deliver both construction projects on time and within budget given the €372.7M contract value.
Strategic Focus: How Merko's 30% minority stake maintains operational control while allowing Kapital to manage maintenance.
Market Dynamics: The pace at which similar defense PPP projects emerge in the Baltics following this financing model.