NIB finances egg production expansion in Latvia
NIB and the Latvian JSC Balticovo have signed a EUR 30 million loan agreement for the company’s sustainable production capacity expansion. The loan is supported under the InvestEU programme.
The ten-year maturity loan supports Balticovo’s investments in the construction of aviary production houses and rearing poultry houses, as well as a new egg-sorting line. Through these investments, the company’s production capacity is expected to increase by almost 50%.
“Our long-term financing is essential for a mid-cap company to diversify funding sources and secure continuous growth,” says Kaspars Piladzis, Senior Banker and Country Lead for Latvia at NIB. “The investments will not only improve Balticovo’s the competitiveness in the market but also accelerate their strategic shift to more sustainable operations.”
Currently, more than 60% of the eggs Balticovo produces are laid in cages. After the investments in new barns and subsequent enhancements, such production will be reduced to 14%.
The new production facilities will be equipped with features such as advanced lighting systems, constant feed access, and purified water, thus improving the hens’ wellbeing. Moreover, the barn houses will have an efficient management system that will allow temperatures to be maintained year-round, while reducing ammonia, dust and CO2 emissions.
“Our long-term financing is essential for a mid-cap company to diversify funding sources and secure continuous growth. The investments will not only improve Balticovo’s the competitiveness in the market but also accelerate their strategic shift to more sustainable operations.”
Kaspars Piladzis
Senior Banker and Country Lead for Latvia at NIB
JSC Balticovo employs 360 people and has more than 3.5 million hens in five different locations in Latvia. The company produces more than 3 million eggs per day, and 70% of its production is exported.
NIB is the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery and growth. You can read more at NIB and InvestEU.
Contact information:
Kaspars Piladzis, Senior Banker, Country Lead for Latvia, at +358 10 618 0391, kaspars.piladzis@nib.int
Vytautas Brazaitis, Senior Communications Officer, at +358 10 618 0235, vytautas.brazaitis@nib.int
