Lattelecom secures new funding for expansion

  • 2009-08-06
  • From wire reports
RIGA - Latvia's largest telecommunications company Lattelecom has arranged a new credit line for 47 million euros to continue investing in its business development and new services, reports news agency LETA. The financing agreement was signed with SEB, Nordea and Swedbank.
"The credit line agreements will make it possible for Lattelecom to continue successful implementation of its business projects despite the complicated economic situation," said the company's chief financial officer, Gints Bukovskis.

"Today we see that those Latvian companies that successfully produce goods for export or provide important services on the domestic market are significant contributors to the economic development of Latvia," said SEB board member Kaspars Delins, adding that "Lattelecom performs both these functions successfully."

The telecoms company will be able to draw upon 20 million euros from SEB over the next two years, have access to another 20 million euros from Nordea Latvia, and 5 million lats (7.1 million euros) from Swedbank after one year.
Bukovskis asserts that "the deal shows that Latvian banks have every confidence in Lattelecom and consider it a reliable and stable business partner, and are therefore ready to provide the necessary financing over the coming years."

"Nordea and Lattelecom have been partners for many years, and we continue to be actively involved in Lattelecom's move toward its business goals," said Nordea's corporate business department's chief, Gustavs Eglitis. "In this particular case, and as usual, the market leader position of Lattelecom, its clear-cut business priorities and future plans and long-time cooperation with Nordea were considered advantages that Lattelecom has."
Swedbank's corporate department head, Daniils Rulovs, stressed that today's knowledge economy is unimaginable without modern telecommunication services, saying that "the more modern and accessible services from Lattelecom will help other enterprises further develop their own electronic businesses."

Lattelecom group's sales for 2008 came in at 160.4 million lats, up 4.5 percent from 2007 results.
Net earnings fell 22 percent, to 29.7 million lats. The telecoms group's divisions include Lattelecom, Lattelecom Technology and its subsidiary Baltic data academy, Lattelecom BPO and service provider Citrus Solutions.