Credit line of LTL 228 million granted to company AB Linas Agro by SEB bankas.
The credit line allocated to finance the working capital need of agricultural commodity trading and agricultural inputs supply company AB Linas Agro has been increased by LTL 28 million by SEB bankas. In the next business year, the above member of the holding AB Linas Agro Group will have an opportunity to use the credit line of LTL 228 million (EUR 66 million).
“The Baltic agricultural sector demonstrates stable performance and has a solid foundation for its further growth. The above is proven by a successful performance of one of leaders in this segment – AB Linas Agro Group in Lithuania and Latvia, where recently company SIA Linas Agro was issued a credit line of LTL 51.8 million (EUR 15 million) by SEB bankas for increasing the company’s current market share. Irrespective of the fact that activity of agriculture-related companies to a large extent depends on such external factor as weather conditions that are difficult to control, such larger credit line will give us an opportunity to continuously implement the established targets and ensure further development in Lithuania and other Baltic countries“, says Aivaras Čičelis, Vice President and Head of Corporate Banking Division of SEB bankas.
According to Tomas Tumėnas, Finance Director of AB Linas Agro Group and AB Linas Agro, based on the preliminary estimates for the financial year that ended in June, product sales volume of AB Linas Agro made up 1.6 million tons, or was higher by 6.6 per cent compared with the last year. “Financial year that started in July shows a number of business opportunities, thus we have plans to purposely increase our business volumes in the local and international markets. We believe that the increase in the credit line by our long-term finance partner, i.e., SEB bankas will enable us to maintain competitive advantage in this sector“, says T. Tumėnas.