"Linas Agro", one of the largest agribusiness companies in Lithuania and part of AB Akola Group, has signed a EUR 30 million working capital financing agreement with Citibank N.A., London Branch. The funds will be used to finance grain purchasing operations at the Port of Klaipeda. This agreement represents one of the few agribusiness financing transactions in Lithuania involving an international commercial bank of this scale.
"Entering into a financing agreement with a global bank is a clear sign of our reliability and competitiveness in international markets. This facility will help us plan seasonal grain purchasing flows more smoothly, manage working capital more efficiently, diversify our funding sources between local and global financial partners, and further strengthen our position within export supply chains," says Jonas Bakšys, Chief Executive Officer of "Linas Agro".
"Linas Agro" will utilise a trade financing structure that enables efficient funding of raw material purchases - a type of financing solution that is not available from local financial institutions.
"Cooperation with one of the global leaders in commercial banking is a significant recognition of our operating standards and the scale of Akola Group's agribusiness. Such transactions enhance the Group's visibility in international markets, expand its network of financial partners, and further reinforce its reputation as a reliable long-term supplier of agricultural commodities. We see this step as an important part of our continued expansion in international markets," says Mažvydas Šileika, Deputy CEO for Finance and Investments at Akola Group.
"Citi is proud to support AB Akola Group and its subsidiary "Linas Agro" with this €30 million working capital financing facility. This transaction underscores Citi's commitment to facilitating essential trade flows and supporting key agricultural players in the Baltic region. We are pleased to provide a Borrowing Base Finance solution that will enable "Linas Agro" to efficiently finance its grain trading operations at the Port of Klaipeda, thereby strengthening their position in global export supply chains," says Stanislava Taneva, Central Europe Head of Corporate Banking of Citi.
"Linas Agro" is one of the largest buyers of wheat, rapeseed, and other cereals in Lithuania, and the leading purchaser in the Baltic states. The company exports wheat through the Port of Klaipeda mainly to Nigeria, South Africa, Spain, and Morocco, while rapeseed is exported to Germany, the United Kingdom, the Netherlands, and the Nordic countries.
In total, Lithuanian farmers harvest around 7-8 million tonnes of cereals each year, most of which are wheat, and approximately 70 percent of the national wheat crop is exported to foreign markets.
For more information:
Mažvydas Šileika
Deputy CEO for Finance and Investments at AB Akola Group
E-mail m.sileika@akolagroup.lt
Mob. +370 619 19 403
