Taking up investment loan
To increase the company’s investment capability AS Baltika has signed an addendum to the contract with AS Swedbank on 31 July 2012 according to which a 3 million euros additional loan will be granted to the company based on the investment plan for the next 12 months.
AS Swedbank also prolonged the maturity date of outstanding 0.6 million euros long-term loan by about two years. The new investment loan and existing 0.6 million euros loan maturity date is 28 July 2016. No changes were made to the interest margin.
AS Baltika made an early repayment of 13 million euros Swedbank loan from the sale of Veerenni 24 property, significantly reducing the companies level of debt. The combination of lower level of borrowings and new time schedule will positively impact company’s cash flows in the coming years, with over 2 million euros benefit in 2013.
Funds from the new investment loan will be mainly used for renovating existing stores. The company plans to additionally open approximately 20 new stores in existing markets, investing in addition to the 3 million investment loan 2 million euros from own resources.
Maigi Pärnik
Member of the Management Board
maigi.parnik@baltikagroup.com
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