Linas Agro Group
Notification on material event
SEB bank issued a LTL 16.4 million loan for the expansion of Linas Agro Grūdų centras
Panevezys, Lithuania, 2011-04-06 08:00 CEST --
SEB bank granted a loan of LTL 16.4 million to one of AB Linas Agro Group companies, limited partnership UAB Linas Agro Grūdų centras KŪB. The company provides grain cleaning, drying and storage services. The loan will be used for expansion of the existing grain storage capacity and construction of two new storages. The project is expected to be finished by 2012, its total value is LTL 20 million.
“We have noticed recently that the companies started planning their business expansion and preparing investment projects more intensively. This is the result of growing export and economic and market stabilization in Lithuania. Positive changes are especially noticeable in agricultural production market where Linas Agro Group has firmly established its position. We see obvious economic benefits in financing the group’s grain storage facilities – jobs will be created in the regions, more grains will be processed with modern equipment, which will ensure better quality”, said Aivaras Čičelis, Head of Corporate Banking Division and Vice President of SEB Bankas AB.
According to Andrius Pranckevičius, Deputy Managing Director of AB Linas Agro Group, the expansion of grain storages is intentionally planned in the regions that lack modern grain processing facilities for successful business development of the group’s companies. “As the demand for grain cleaning, drying and storage services is growing in Lithuania, we have to purchase part of these services from other companies. Cooperation with long-term financial partner SEB bank will allow us to increase the capacity of our own grain storages by 30% and strengthen the position of the group’s companies in the regions. Expansion of grain processing capacities is part of our investment programme presented to investors a year ago”, said Andrius Pranckevičius.
Expansion of grain storage capacity in Vilkaviškis by 9 thousand tons will increase their grain processing and storing capacity up to 34 thousand tons. After the construction of two more storages in Pasvalys and Šakiai districts with total capacity of 16 thousand tons, the overall capacity of storages owned by Linas Agro Grūdų centras will total almost 175 thousand tons of grains. The implemented project is expected to create over 20 new jobs.
SEB is a leading Northern European financial group. SEB bank builds long-term relations with its customers by providing financial consulting and other financial services. The main activities of SEB banks in Denmark, Finland, Norway and Germany are business and investment banking services to business clients and institutions. SEB group operates in 20 countries worldwide with 17 thousand people employed. For more information about SEB please go to www.sebgroup.com.
About AB Linas Agro Group
AB Linas Agro Group is an integrated agribusiness developing parent company engaged in the production and trade of grains, oilseeds, feed raw materials and agriculture-related products. It controls companies in Lithuania, Latvia, Denmark and Ukraine. The group consists of international trading company in Lithuania AB Linas Agro, grain storage company UAB Linas Agro Grūdų centras KŪB, Latvian trading company SIA Linas Agro, international trading company Rosenkrantz A/S in Denmark, Ukrainian based fertilizer production and trade company CJ-SC UKRAGRO NPK, group of companies ŽŪB Landvesta managing agricultural purposes land, group of four agricultural companies UAB Linas Agro Konsultacijos and other companies. The financial year of the companies begins on 1 July.
Together with partners, the controlling company owns companies UAB Dotnuvos projektai and UAB Kustodija that provide agriculture-related products and services, and logistics company UAB Jungtinė ekspedicija.
From 17 February 2010 AB Linas Agro Group is included in the main list of companies of NASDAQ OMX Vilnius stock exchange.
About UAB Linas Agro Grūdų centras KŪB
Limited partnership UAB Linas Agro Grūdų centras KŪB controls grain storages in Kėdainiai, Kupiškis, Joniškis, Šiauliai and Vilkaviškis. The total capacity of storages is over 148 thousand tons. All grain storages (except the one in Šiauliai) are new and modern, built in 2002-2006. During the financial year that started 1 July, wheat storage in Šiauliai was modernized: new grain dryer was built, grain acceptance pit was renewed, greater part of transportation equipment was replaced and equipment control system was automated. Improvement and optimization of drying capacity will ensure better quality of grains and cut energy expenses.
Head of Media Relations of SEB bank
Phone: +370 5 268 1198, +370 687 04 052
Andrius Pranckevičius, Deputy Managing Director of AB Linas Agro Group
Phone: +370 687 71 419