DNB Bank issues credit line worth EUR 11.5 million to JSC RIGAS SILTUMS
OREANDA-NEWS. DNB Bank has issued a short-term loan worth EUR 11.5 million to joint stock company RĪGAS SILTUMS, which is the largest provider of centralised heating in Riga and the Baltics. RĪGAS SILTUMS plans to use the loan for working capital needs during the heating season.
JSC RĪGAS SILTUMS provides approximately 76 % of the heating in Riga. About 76 % of the heating is sold to households, while the rest – to legal entities. RĪGAS SILTUMS also produces electricity and in 2014 this constituted 8.3 % if the company’s profits.
“Joint stock company RĪGAS SILTUMS has been a client of DNB Bank for more than 10 years. We are pleased that thanks to our financial offer, RĪGAS SILTUMS chose DNB Bank as the provider of the credit line for the company’s working capital needs to ensure liquidity during the period when the company has to work at its highest capacity,” Lauris Macijevksis, Vice-President of DNB Bank, explains.
Biruta Krūze, Member of the Board at JSC RĪGAS SILTUMS, says: “We have established a successful and constructive relationship with DNB Bank. The financing provided will be used to ensure the primary functioning of the company. The heating provider has to pay its suppliers on a continuous basis, however, heating consumers have to pay for the heating they have received by the 20thdate of the next month. During the active heating season when consumption and bills increase significantly, a credit line is crucial to stabilise the financial flow. This is a practice the company employs every year.”