4. April 2017
LHV Pank signed a 10-year unsecured loan agreement, in the amount of EUR 12.5 million, with the European Investment Fund (EIF), to expand the loan facilities of small and medium-sized enterprises.
Loans funded under the loan programme range from EUR 25,000 to EUR 500,000 and are aimed mainly at boosting the growth of enterprises. The loan is suitable for the development of business and purchasing equipment or machinery or for making other investments. According to the conditions of the loan agreement, signed with the EIF, LHV is to relend the EUR 12.5 million to enterprises within 24 months and add its own additional contribution.
“I am pleased that LHV managed to sign its first loan agreement with an international lender. The conditions of the loan programme are favourable to us as the loan is without collateral and there are no additional conditions, which would establish restrictions or obligations for LHV that differ from our internal objectives,” Meelis Paakspuu, CFO at LHV commented. “We are taking advantage of this excellent opportunity to provide even more support to financing the growth of Estonian enterprises. The liquidity of LHV is at a high level; accordingly, it was not economically expedient to take a bigger credit line. Still, the concluded transaction is of particular significance, enabling us to involve funds on the international money markets in the future, to finance Estonian enterprises under favourable conditions,” Paakspuu added.
According to an arrangement between LHV Pank and the EIF, LHV is offering additional financing facilities for small and medium-sized enterprises. This is done under the mandate agreement concluded between the European Investment Fund and the European Investment Bank in 2014, the objective of which is to contribute to the capability of smaller institutions and thereby expand the financing opportunities for small and medium-sized enterprises.All news