The first InnoFin agreement: robots and lasers will be used for production of Lithuanian safes

Šiaulių Bankas has signed a loan agreement with the company Seifuva producing safes under which EUR 689 thou have been granted to the company for investments into advanced production system. This is the first loan of Šiaulių Bankas issued to the business under the innovative corporate financing instrument InnoFin for a five-year period.

'Making investment into modern production facilities we will raise the company's production to the new level and will be able to offer our customers the unique safes having no analogues in the market. I am particularly pleased that we have found an effective solution how to finance investments into the advanced production line - without a sufficient collateral required for usual business loans, we have received a proposal to ensure the credit using InnovFin portfolio guarantee ', - said Darius Čereška, Director of Seifuva.

The new production facilities will allow Seifuva to improve the quality of produced safes, ensure faster production and to reduce costs. In addition, Seifuva will be able to offer the higher quality innovative safes to the market which are resistant not only to burglary, but also to fire and flooding by water. According to the resistance level Seifuva safes would be especially reliable and unique in the international market. The loan will be used to acquire efficient and innovative equipment for precise cutting, bending and welding metal using a photonic - laser and robotic for welding.

In addition, this investment project of Seifuva has received partial funding from European Regional Development Fund under the Ministry of Economy under in compliance with the facility called 'DPT Pramonei LT+'.

'InnovFin' aims to support financing and implementation of productive investments in the EU and to ensure bigger access to finance. Šiaulių Bankas is one of a few commercial banks in Lithuania offering InnoFin facility.

Seifuva is an example of an efficient solution for many small, medium and larger Lithuanian companies that are planning to invest into technology, manufacturing or business process modernization but are facing problems with provision of collateral to the bank. 'InnovFin guarantees allow businesses to reduce the level of credit risk, and the bank to give credit at favourable terms', - emphasized Chief Executive Officer of Šiaulių Bankas Vytautas Sinius.

InnovFin loan may be issued in various forms such as a credit, credit line, overdraft or financial leasing. Loans are provided in euros from one to ten years.

Besides, it is important that InnovFin is not de minimis state aid, therefore, taking advantage of this guarantee the companies still can apply for the state aids for participation in foreign exhibitions and trainings.

Some 450 businesses are expected to take advantage of InNoFin, with Šiaulių Bankas creating a 50-million-euro portfolio of loans and financial leases.

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About Šiaulių Bankas

Šiaulių bankas, rapidly and steadily growing owner of the biggest Lithuanian capital share, was founded in 1992.The bank provides consumer financing, saving, investment and daily banking services to individuals and corporate customers, offers fast and flexible financing options to business, and focuses on small and medium-sized businesses in particular. Šiaulių Bankas services its customers in even 69 customer service points operating in 38 cities and towns throughout Lithuania. The Bank's shares are quoted on the Main List of the NASDAQ Baltics.

Two solid international business and finance magazines positively evaluated successful recent year performance of Šiaulių Bankas recognizing it as the Best Bank in Lithuania - The Banker issued by an influential Great Britain's daily newspaper The Financial Times in 2015; business and finance publication Global Finance in 2015 and 2016.

About InnovFin

Guarantees and indirect guarantees are provided according InnovFin SME Guarantee Facility while financing loans amounting to from EUR 25 thousand to EUR 7.5 million . These investments aim to improve abilities of innovative small and medium-sized enterprises as well as mid-cap companies (up to 499 employees) to borrow. This EIF programme is being developed through financial intermediaries - banks and other financial institutions in the EU Member States and associated countries. Under this programme, the EIF offers a guarantee to cover part of the losses, if any, incurred by financial intermediaries while financing the eligible loans.