SEB this week signed a loan agreement worth 190,000 euro with Konvert Plast in Latvia. The loan is the first SEB has granted under a cooperation framework that the bank agreed with the European Investment Fund earlier this year.
The loan to Konvert Plast enables the company – a long-standing SEB client – to expand its business through the purchase of two polyethylene foam production lines. The term of the loan is five years.
The two new production lines are part of a larger investment programme at the company that totals around 530,000 euro and include additional production equipment and renovation of the plant building. One part of the programme was concluded last year with support from the European Union’s structural funds and a SEB loan of 79,000 euro.
“We have successfully cooperated with SEB for over 10 years. I am satisfied with this cooperation. The bank’s staff works professionally. The bank trusted our business idea and we will do everything to live up to their expectations,” Imants Šteins, finance director at Konvert Plast.
SEB in Latvia signed an agreement with EIF - an EU institution governed by the European Investment Bank – in March this year under which SEB will provide loans worth 60 million euro to small and medium sized enterprises in the country.
The agreement sees SEB Latvia managing a programme that enables the bank to accelerate lending under normal market terms and conditions to local SMEs.
“We are truly satisfied that the cooperation agreement with the EIF has yielded its first positive results and that SEB is the first bank to use this opportunity to provide support to small and medium sized businesses within the framework of the programme,” says says Kaspars Dēliņš, head of Merchant Banking in Latvia.