City Service, which is planning expansion in Poland and Latvia this year, said that it had signed a five-year financing agreement with the branch on Monday and would use the loan to finance acquisitions in foreign and Lithuanian markets, as well as to refinance existing debt.
Swedbank, one of Lithuania's largest banks, has been City Service's main creditor until now, Vilius Mackonis, the company's head of communications, tells BNS.
"Around 43 million litas (EUR 12.5m) will be used for loan refinancing," he says.
City Service expects to strengthen its position in Latvia this year through strategic acquisitions. Also, the group, which has until now provided services to business customers in Latvia, this year plans to enter the neighboring country's apartment building administration market.
The total area of buildings managed by Riga City Service, the group's Latvian subsidiary, totalled 681,000 square meters in late June.
In Poland, the group is planning to expand its operations through ZZN WAM, a local company it owns.
The City Service Group's long-term debts in late June stood at 51.391 million litas, including 26.09 million litas owed by the parent company. Short-term debts amounted to 134.49 million litas and 59.22 million litas, respectively.
The Vilnius-based group's first-half net profits rose by 16 percent year-on-year to 11.6 million litas (EUR 3.36m). First-half sales were up by 1.7 percent to 275.4 million litas.
