LITHUANIAN SEAFOOD PROCESSOR AGREES ON FUNDING PACKAGE
Lithuanian seafood processor agrees on funding package. Lithuanian seafood processor Viciunai Group has agreed on EUR 20 million loan to fund its business with Austrian bank Raiffeisen Bank International AG.
For Viciunai, this is the first funding agreement of this scope in Western Europe, which helps the Lithuanian company group to further its sustainable funding strategy by diversifying its sources. The world’s second-largest manufacturer of surimi products is discussing funding with some other potential partners in the West as well.
“In recent years, the business has grown very rapidly: in 2018 the sales exceeded EUR 530 million, and we are planning to pass the EUR 600 million mark this year. Such growth requires a lot of investment to product development, new technologies and sustainable business. That is why we need a balanced loan portfolio with competitive cost and diversified risk”, says Sarunas Matijosaitis, CEO of Viciunai Group.
According to him, Viciunai sells its products in over 70 countries worldwide and is growing most quickly in EU markets where it competes with large producers from France, Spain and other countries. Until now, the part of the business developed in Western Europe has been funded by Lithuanian banks, even though the company’s revenue in Lithuania is merely below 6 percent of total sales.
Representatives of Raiffeisen Bank International AG have said that the funding will allow Viciunai Group to secure working capital necessary for such a rapid growth. This loan also shows that the Austrian bank is ready to contribute to the development of a strong business.
“Our bank is focused on sustainable relationships with partners. We see a potential in growing together with Viciunai Group in our main markets, offering other modern-banking services along with the funding,” says Daniel Rath, Head of Corporate Customers at Raiffeisen Bank International AG.
According to Sarunas Matijosaitis, new sources of funding in Western Europe will increase business efficiency and improve the company’s competitiveness in those markets.
“The deal with Raiffeisen Bank International has once again confirmed that Viciunai Group is valued as a reliable business in Western Europe,” Sarunas Matijosaitis has commented.
Raiffeisen Bank International is a corporate and investment bank headquartered in Austria, operating in 14 European markets. As of 2005, the bank’s shares are listed on the Vienna Stock Exchange. Raiffeisen Bank International is the second largest bank in Austria, with 47,000 employees, almost 16.4 million customers and a balance of EUR 148.6 billion. Its market capitalization currently is EUR 6.8 billion.
Viciunai Group owns 21 subsidiary sales and distribution companies in 20 countries, it also has factories in four countries, supplying their products to consumers in over 70 markets. In 2018, the Group’s consolidated sales revenue exceeded EUR 530 million.