OREANDA-NEWS.  March 18, 2014. Continuing to invest in the economies of the Baltic States, Citadele Group has awarded EUR 15.5 million to Lithuanian JSC “Mantinga”, which produces frozen bread and pastry products. Company will invest in modernization of the manufacturing system, building a new factory, and refinance obligations.

This transaction launches a new type of financing model so that Citadele can finance businesses at the Baltic level more actively. “Mantinga” loan represented the first time that Citadele Bank partnered with its Lithuanian subsidiary in terms of making a joint financing offer to a single company.

“This is the first case in which Citadele has awarded financing for the development of a project in terms of co-operation between our operations in Latvia and Lithuania,” says Citadele board member Santa Purgaile. “This launches a new financing model for corporate loans, the aim being to award more financing for pan-Baltic projects. This syndicate loan was a trailblazer for future projects, because we are prepared to support companies throughout the Baltic States, thus also helping to develop the economies of the three countries.”

“Mantinga” plans to invest EUR 1.7 million of the loan in modernising its frozen bread and pastry products manufacturing system. EUR 6.4 million will go toward a new factory, and EU financing is also to be available for that. It is planned to implement the project no later than autumn of 2015. The project will establish 83 new workplaces. Currently there are 784 employees in “Mantinga”.

“Life goes on, and we must develop with the times. If we use old technologies, we will fall behind our competitors,” says Kestutis Svitojus, CEO of “Mantinga”. “A modern and automated production line will help us to save energy and raw material costs, as well as to expand our range of frozen products.”

The company has exhausted its manufacturing capacity, because it has successfully entered the Polish market, also expanding its market share in the Baltic States and Scandinavia. That is why it decided to invest in its own development. In 2013, “Mantinga” exported 60% of its products.
Between 2007 and 2013, the company implemented ten projects with EU support. The total sum was EUR 10.9 million, of which EUR 1.5 million came from the EU. The projects related to investments in manufacturing, quality systems, employee training, and expansion of export markets.