18.05.2022
LHV Pank has signed a loan agreement with E-Piim, Estonia’s largest dairy producer, to support the construction of a new dairy plant in Paide in the total amount of EUR 34.5 million. The proposed investment, with a total project cost of around EUR 154 million, will increase the production capacity and competitiveness of E-Piim.
LHV participated in the financing of the project together with major international banks, also providing the dairy producer with a credit line based on domestic capital. According to Indrek Nuume, Head of Business Banking at LHV, the project has a wide and long-term impact. ‘Milk production is one of the mainstays of Estonian agriculture. High-quality food is our key export article. The establishment of such a plant in Estonia as a result of international cooperation is the fruit of a great deal of work, which will have a positive impact on our agriculture for decades to come,’ Nuume commented.
‘The loan agreements signed will allow the plant to be completed on time, and we recognise LHV Pank for developing a challenging consortium-type financing model in cooperation with foreign banks, whose experience can help Estonia realise ambitious projects in the future,’ Jaanus Murakas, the Chairman of the Management Board at E-Piim, commented.
The new plant to be built in Paide will replace parts of the ageing production facilities and will significantly expand the existing production capacity by adding a modern production unit. The new plant will process milk from the cooperative’s members into high value-added dairy products, such as hard and semi-hard cheese and pasteurised cream. The plant will also produce whey powder. The new plant will have a processing capacity of up to 1,150 tonnes of milk per day and 85 tonnes of whey concentrate per day.
Among other things, the investment supports sustainable agriculture. E-Piim promotes sustainable livestock farming among its members, the milk suppliers. In addition, E-Piim is implementing a carbon-neutral business programme that aims to achieve climate neutrality by 2040 and a 55% reduction in emissions by 2030, including among its milk suppliers.
LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. The Group employs more than 740 people. As of April, LHV’s banking services are being used by 342,000 clients, the pension funds managed by LHV have 135,000 active clients, and LHV Kindlustus protects a total of 148,000 clients. LHV’s UK branch offers banking infrastructure to 200 international financial services companies, via which LHV’s payment services reach clients around the world.
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