AB Linas Agro received 90 million euros loan for working capital
Linas Agro, a company engaged in international trade and supply of goods to farmers, borrows funds from SEB Bank and Swedbank. Syndicated loan of 90 million euros will be used for the company’s working capital. Both banks provide the loan in equal installments.
The company will use the loan funds to purchase agricultural inputs for farmers – certified seeds, fertilizers, microelements and other. Linas Agro will also allocate the granted credit to buy the harvest from farmers.
“This year is very favorable for grain and many other crops growers because of the situation on the international markets, they will be able to sell the harvest at historically higher prices, so the need for funds to buy the harvest is increasing. The loan will ensure the proper supply of farmers with the necessary means to grow the future harvest and also buy this year’s harvest. At the same time, we hope that the planned cooperation with AB Kauno Grūdai will allow to increase the volume of trade and exports, ” comments Tomas Pučkis, CEO of AB Linas Agro.
According to him, compared to last year, the area of wheat crops in Lithuania has increased by almost 6% this year, and of rapeseed by more than a tenth. The purchase prices of both crops and fodder grain are going up, so the need for funds to buy the harvest is also increasing.
AB Linas Agro is one of the largest grain exporters and suppliers of goods and services to farmers in Lithuania, its consolidated revenue for the financial year 2019/2020, which ended in June last year, amounted to EUR 477 million.