SEB Bank and Girteka Logistics have agreed on a record-high EUR 95 million leasing facility

SEB Bank has issued financing in an amount of EUR 95 million to Girteka Logistics, Europe’s leading asset based FTL Company. The funds obtained were and will be used for the upgrade and expansion of the company’s transport fleet of trucks and trailers. The investment will contribute towards increasing the efficiency of the fleet which transports cargo across Europe, Scandinavia and Russia and enable an increased capacity for Girteka Logistics. This is the current-year’s largest leasing transaction financed by SEB Bank in Lithuania.

“For more than 20 years, SEB Bank has been one of Girteka Logistics’ key financial partners. By providing leasing and other services for many years, we have been supporting the Group’s growth to become a leading transport and logistics company in Europe. Besides economic value, the transaction is particularly valuable also from the point of view of corporate sustainability. The existing vehicles are gradually replaced with new-generation means of transport, which not only serve for the reduction of environment pollution, but increases road safety,” says Vilius Juzikis, member of the management board Head of Corporate Banking Division of SEB Bank in Lithuania.

He says that in recent years trends in transport and logistics indicate increasing competition in the European Union in this particular business sector, therefore, companies must be on the look-out for ways to increase their business efficiency and competitiveness. 

“We are constantly investing into best in class customer service, high quality transportation and our more than 8.300 dedicated employees. This “we care” attitude is rewarded with increasing business from existing and new clients, and once more allows us +25% organic growth in 2017. We appreciate our partnership with Scandinavian Banks, and SEB Bank has been our trusted partner from day one,” says Mantas Ranonis, Chief Financial Officer of Girteka Logistics“.

Within the first eight months of the current year, an increase in the number of freight vehicles leased by SEB Bank’s corporate customers was 45 per cent, year on year. “Investments for the upgrade of the transport fleet have been increasing, however, the sector’s debt level has remained unchanged. We see that this year transport companies, together with energy and commercial entities, are among the most active ones looking for financing possibilities,” V. Juzikis maintains.

According to SEB Bank’s analysts, in 2018 the market share of heavy goods vehicles lease will remain at a similar level. “Eastern markets are signalling recovery, but it is still too early to predict how much will it increase. Therefore, next year, we expect similar financing of the transport fleet renewal and development,” V. Juzikis comments.