The three largest Lithuanian banks Luminor, Swedbank and SEB have increased the working capital financing limit for Agrokoncernas Group to EUR 311 million. The additional financing needs are due to a significant increase in cereal and agrochemical prices.
According to Daiva Kuršelytė, Deputy General Director of Agrokoncernas Group, the increased financing limit will help to supply farmers with agrochemical production and to pay for purchased grain on time. “As every year, the companies of the Agrokoncerno Group are fully prepared to meet the needs of their customers.
For Agrokoncernas, a company trading in agrochemical products, SEB Bank increased the limit to EUR 115 million and Swedbank granted an additional factoring limit of EUR 10 million. According to the company’s director, Edgars Šakis, the limits are increased based on the company’s overall performance and results.
“We have many years of experience and offer farmers solutions that are tried and tested and based on science. We supply them with tried and trusted products. We have repeatedly proved that we are trustworthy through the successful development of our company’s activities,” says E. Šakys.
Commenting on the decision to increase the financing, Vilius Juzikis, Member of the Board of SEB Bank and Head of the Business Banking Service, says that the companies of the Agrokoncerns Group have been working on the development of fertiliser technologies for many years, with sales of their products rising by 20-40% annually, and that, after the outbreak of the war in the Ukraine, the Group made a decision to no longer continue its cooperation with Russia and Belarus, and to substitute it with other suppliers in Poland, Norway, Morocco, Canada, and elsewhere.
“Taking into account our long experience of successful cooperation with this group of companies, we believe that the additional financing provided by the bank will help to ensure the company’s future operations more smoothly and to manage the existing risks, while the high grain prices will allow Lithuanian farmers to spend more money on their crops,” says V. Juzikis.
For Agrokoncerno grūdai, another Agrokoncerno group company, the two banks Luminor and Swedbank increased the financing limit to EUR 186 million.
The total financing limit of the two banks for Agrokoncerno grūdai was increased by EUR 71 million. “Luminor’s stake now amounts to EUR 136 million, Swedbank’s to EUR 50 million. Before this increase, the limit was €115 million.
“Our long-standing customer Agrokoncerno grūdai needed such an increase due to changes in the grain market. The war in Ukraine and inflation have led to an increase in demand and prices for cereals, making additional financing necessary to maintain trade volumes. Although grain prices are currently falling slightly, the additional limit will allow the client to have a buffer until the next price level is clearly foreseeable. We are therefore pleased to be able to contribute to the smooth continuity of the company’s operations,” says Jonas Urbonas, Head of Corporate Banking at Luminor.
Karolis Šimas, Director of Agrokoncerno grūdai, is delighted with the success of long-term partnerships and the trust he has gained with the banks.
“A loan of this size is proof that we have reached the level of a strong international company. This is the result of years of consistent work. Although grain procurement prices are currently very volatile, we are prepared for any price spike. We are pleased to have strong partnerships that help ensure smooth and timely payments to farmers,” says K. Šimas.
“Agrokoncerno grūdai, a member of the Agrokoncerno Group, is the largest grain buyer in Lithuania. The company buys around 1.5 million tonnes of cereals from farmers every year.
