OREANDA-NEWS. SIA Linas Agro, a subsidiary of AB Linas Agro Group, has refinanced its existing liabilities and attracted new capital to develop its business in Latvia. The credit line for working capital in the amount of 30 million euros has been granted by SEB and DNB banks in Latvia within the scope of the club loan with SEB banka being the leading bank of the transaction. The funding is secured in equal parts - 15 million euros by each bank.

According to the Director of Finance of AB Linas Agro Group, Tomas Tumenas, SIA Linas Agro is one of the biggest grain sourcing and agricultural inputs supply companies on Latvia. The company has been operating in Latvia since 2003 and expanding activities to that extent that the appropriate financing of current assets is required for further business development. The 30-million euro loan provided by two banks would allow the Latvian company to successfully achieve the plans for 2014 / 2015 financial year and enlarge its market share in the trade of grain and oilseeds, mineral fertilisers, plant protection products and crop seeds in Latvia.

Kristaps Strazds, Head of the Corporate Service Division in SEB banka in Latvia says: “SEB in Lithuania has been one of the main financial partners of AB Linas Agro Group holding for many years already. We are glad that this successful development is now continuing in Latvia as well. The agricultural sector has always been of high importance to the national economy of Latvia, and SEB banka is also a stable supporter of this sector - about 10% of our corporate loan portfolio has been granted to agricultural companies. We hold a positive outlook for the agriculture sector and see excellent prospects for companies operating in this field both in Latvian and in international markets.”

Head of the Manufacturing Companies Unit of DNB banka in Latvia Jānis Gaibišelis explains: “Agriculture has been one of the target segments of DNB banka for several years already, and gradually more and more agricultural companies working in Latvia and in the entire Baltic States territory are choosing the financial services offered by DNB banka. It is a great pleasure for us that the successful and continuous cooperation between Linas Agro Group and DNB in Lithuania has expanded and we have now also established cooperation in Latvia, thereby providing support for the further development of Linas Agro Group and enlarging the presence of DNB banka in the agricultural sector!”