AUGA group, AB and its subsidiaries signed financing agreements with KŪB Business Aid Fund and UAB Medicinos bankas
The organic food producer AUGA group and its subsidiaries (hereinafter, the Group) have signed financing agreements according to which the KŪB Business Aid Fund (hereinafter, Fund), which is managed by UAB State Investment Management Agency (hereinafter, VIVA), and UAB Medicinos bankas, provided almost EUR 10 million in financing to the Group.
“The funding received will ensure the financial stability of the Group in the short term, and in the long term will allow us to continue to develop of the technological projects envisaged in our strategy and start their commercialisation. We expect 2022 to become a major year of technological breakthrough for the Group − we plan to launch biomethane production, employ our zero emission hybrid tractors on farms, and complete testing of specialised feed technology,” says Kęstutis Juščius, CEO of AUGA group, AB.
The Fund helps large and medium-sized businesses affected by COVID-19. The agreement states that the Fund has allocated EUR 7.28 million to the Group. Funding is provided for a period of 4 years.
In 2021, AUGA group faced challenges caused by the COVID-19 pandemic, with unavoidable outbreaks in some of its production units leading to short-term production capacity shortages. The Group’s plans also had to be adjusted to factor in disruptions in global logistics, resulting in increased logistics costs, an unbalanced supply chain, and delays in the implementation of export projects due to transportation shortages. The extreme heat recorded in June and July of 2021 also had a significant impact on the results of the Group.
UAB Medicinos bankas, focused on agricultural and other green investments, has also signed an agreement with the Group. UAB Medicinos bankas provided the Group with a loan of EUR 2.5 million for a period of 3 years.
Mindaugas Ambrasas, AUGA group, AB CFO
Phone: +370 620 67296