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COBALT represents banks syndicate in providing EUR 86m loan for the development of UAB Vakarų medienos grupė

2020-07-20

Law firm COBALT represents the European Bank for Reconstruction and Development (EBRD), Swedbank and Citadele banks providing EUR 86 million syndicated loan for the development of UAB Vakarų medienos grupė. EBRD will provide EUR 20 million, Swedbank will provide EUR 36 million and Citadele will provide EUR 30 million for the syndicated loan.

The allocated funds will be used to finance a particle board plant built in the Naujoji Akmenė Free Economic Zone. This project will allow to fully meet the need for particle board in Lithuania and to generate greater added value in the areas of structural wood and furniture.

VMG Group is a modern leader of wood industry engaged in wood processing, business management, technical maintenance, logistics, development of industrial real estate in Lithuania, Belarus and other countries of the European Union. VMG Group consists of 16 companies operating in Lithuania and foreign countries and employing over 3.9 thousand people. The products manufactured by the companies of the Group are exported to 11 countries in the EU, USA, Middle East, India, China and Australia. A worldwide-famous Swedish furniture retailer IKEA selling the company’s products through its own store chains in different countries of the world is one of the major partners of the Group.

COBALT team prepares and reviews contracts and other related documents, takes care of the preparation of the legal opinion and provides general advice related to lending. COBALT team of lawyers consists of Partner, Head Corporate Transactions Department Elijus Burgis, Partner, Head of Banking and Finance Practice Group Eva Suduiko, Senior Associate Dr Lina Aleknaitė-van der Molen, and Associate Liucija Bitinaitė.