AB Linas Agro, the largest subsidiary of AB Linas Agro Group, is an international trader of agricultural raw materials and the largest supplier of goods to farmers in the Baltic States. Following the acquisition of AB Kauno Grūdai by Linas Agro Group in July last year, the consolidation of the agricultural inputs trade and grain trading businesses within Linas Agro was initiated, separating these businesses from Kauno Grūdai. Kauno Grūdai is to focus on food and feed production and strengthen these activities.
‘Transferring businesses and activity to Linas Agro is practically complete as of 1 July. The agricultural inputs supply and grain trading business of Kauno Grūdai has become part of Linas Agro. The trade volume will enlarge significantly, increasing the need for financing for AB Linas Agro. We are delighted to attract Credit Suisse, one of the world’s largest providers of financial services, alongside our traditional financiers, which opens even more opportunities for us to expand our activities. The trust of our traditional partners Swedbank and SEB banks is not only demonstrated by their participation in the syndicated loan but also by the fact that both banks are providing loans totaling EUR 70 million to finance Linas Agro’s operations in Latvia and Estonia,’ says Mažvydas Šileika, CFO of Linas Agro Group.
The COVID-19 pandemic, which lasted for several years, and the subsequent war in Ukraine, highlighted the vulnerability of Europe’s food chains and the strategic importance of agriculture and the food industry in each country.
‘Acting as a syndicated loan agent, we are grateful for the opportunity to provide financing for Linas Agro Group while the company accomplishes its’ business consolidation and sets a sound foundation for its future growth across the Baltic region. The role of the agriculture sector has grown in importance in the face of global challenges; therefore, we hope that the latest financing will give the company the necessary means to implement its’ immediate plans without interruptions,’ says Head of Swedbank Large Corporate Client Department Arnoldas Gaudiešius.
‘Since the outbreak of the war in Ukraine, AB Linas Agro had to look for new supply markets in order to assure local farmers with necessary inputs outside Russian and Belarusian origin for the harvest and to be able to purchase grains afterwards. Despite this led to increased costs and a greater necessity for working capital, we are sure that the company now is stronger than ever to deal with the challenges market brings. We appreciate the confidence of Linas Agro in choosing SEB Bank as a long-term financial partner. Granting of the syndicated loan proves that both local and international banks are ready to finance Lithuanian companies based on long-term successful mutual cooperation,’ states Vilius Juzikis, Member of the Board and Head of Corporate Banking Division at SEB Bank.
News Source: Globe Newswire
