"OP Corporate Bank" and "Swedbank" have secured €140 million in financing for the company "Linas Agro".
In preparation for the upcoming agricultural work season, "OP Corporate Bank’s" Lithuanian branch and "Swedbank" have agreed with the company AB "Linas Agro" on €140 million in financing for working capital needs. The financing provided by the banks amounts to €50 million and €90 million, respectively. "Linas Agro" is part of AB Akola group, one of the largest agricultural and food production company groups in the Baltic States.
"The received loan provides us with a strong financial foundation to ensure the smooth operation of this grain season – to purchase the harvest and settle on time with our key partners – the farmers. It also allows us to continue investing purposefully in supplying farmers with the most essential tools for next year's sowing, thereby ensuring their readiness for the upcoming harvest," says Jonas Bakšys, CEO of Linas Agro.
"This financing agreement constitutes the largest portion of our group’s portfolio, making it strategically important for long-term operational success and growth. At the same time, it clearly demonstrates the banks’ confidence in our business and its future prospects," states Mažvydas Šileika, CFO of AB Akola group.
"Agriculture and the food industry are among the most important sectors of the economy. It is critically important for every country to have local production capable of ensuring food supply. This is especially relevant now and in the future, as we live under conditions of great uncertainty. It is commendable that the group is growing successfully, expanding its business both in Lithuania and across the Baltic States, and doing so not only organically but also through acquisitions – this accelerates the pace of growth, and we are pleased to contribute to financing the needs of a business that is important to the entire country," says Giedrius Dzenkauskas, Head of Sales at OP Corporate Bank, Lithuanian branch.
"Swedbank’s partnership with Linas Agro has lasted for more than two decades. During this time, the company has established itself as one of the leaders in grain trading and export not only in Lithuania but throughout the Baltic region. Considering its strong performance indicators and demonstrated growth potential, this year we increased our financing share by an additional €27.5 million to €90 million. This should ensure proper preparation for the upcoming seasonal work," says Ignas Mačeika, Head of Business Customer division at Swedbank Lithuania.
Preliminary forecasts indicate that this year’s grain harvest may be better than last year’s both in Lithuania and Europe. It is projected that the wheat harvest in the European Union could reach 143 million tons, or 13% more than in the previous period. These are among the highest yield forecasts since 2018.
Grain crops occupy a significant part of the country’s food and raw material export structure, with the annual grain export value exceeding €1 billion and accounting for about 5% of all Lithuanian-origin goods exports.