Latvian egg producer Alūksnes Putnu Ferma lands €33M debt deal to boost output 56%
What's the deal? Alūksnes Putnu FermaDealroom has a profile for this one. Try Dealroom →, a Latvian egg producer within the European agri-food group AgrovaDealroom has a profile for this one. Try Dealroom →, has secured €33 million in debt financing from SwedbankDealroom has a profile for this one. Try Dealroom → and state-owned development bank ALTUMDealroom has a profile for this one. Try Dealroom →. The money funds a major expansion and refinances existing debt.
Where's it going? The company is building three new laying hen houses totalling 7,380m² in Alūksne, modernising its egg grading and packing centre, and developing an organic fertiliser facility. It is also adding pullet-rearing infrastructure in Preiļi Municipality.
What's the endgame? Once complete, annual egg production will rise 56%, from 180 million to roughly 280 million eggs. The company says the project will strengthen export potential and create jobs across Latvia's regions.
Swedbank provided €25 million, covering the development project and the refinancing, which cuts the company's interest costs. ALTUM added an €8 million loan maturing by 2036, disbursed gradually as the project progresses through the end of 2027.
Why now? ALTUM's funding comes under its Large Investment Programme, a state aid scheme designed to drive business growth. If the project hits its targets, the eligible portion of the ALTUM loan will be written off, shortening the payback period.
Why it matters. "The involvement of two major financial partners enables us to undertake one of the most ambitious development phases in the company's history," said Hermanis Dovgijs, chairman of the management board. The total project cost is roughly €27 million.
The signal: The deal shows how public and private financing can combine to back large-scale food production in Europe's smaller markets, strengthening regional output and export capacity.
Read more: sa.marketscreener.com
Image credit: Generated with Gemini
