During first two quarters SEB lends 243 million euros to businesses

During first six months SEB Latvia has issued new loans worth EUR 243.4 million to companies in Latvia. It is 48% more than in first half of the previous year, when SEB signed new loans of EUR 164.4 million to businesses.

60% of the new loans this year (EUR 146 million) have been issued to large companies with annual turnover above EUR 20 million. Small and medium sized companies have received credits worth EUR 97 million.

Between January and June this year SEB has approved new loans for more than 2500 companies in Latvia, which is 51% than during first six months of 2015 when new loans were issued to around 1700 businesses.

June was the most active month so far in terms of lending to companies, when SEB signed new credit deals with total worth of EUR 64.7 million with almost 750 companies.

Ints Krasts, board member of SEB Latvia: "First half-year in in terms of lending to businesses has been much more active than the previous year. We have already seen a number of large scale deals, for example refinancing or change of ownership in shopping malls or investment projects in production companies. A number of large deals are still in the pipeline. The number of those clients who are actively considering development projects and consulting about financing has grown.

We also see that the interest about buying companies has increased from local and foreign investors alike. Competition between banks is fierce, especially in the corporate segment, and in many cases interest rate is not the decisive factor for the client – they choose the most flexible and forthcoming bank, who is able to offer the simplest structure for the deal and deliver timely decisions.

However, the lending activity to businesses in Latvia is still lagging behind the pace in Lithuania and Estonia where companies are investing even more actively."

During first six months of this year around 2100 businesses have become bank’s clients and chosen SEB as their financial partner.

The total amount of new loans signed by SEB during first half year to private individuals and companies is EUR 313 million, which is 63% more than during respective period of the previous year. Since beginning of the year bank's loan portfolio has increased by 1%.