Girteka Logistics to buy new DAF trucks after big banks green-light up to €700 million in credit

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Lithuanian road transport giant Girteka Logistics has signed an agreement with a number of big-name European banks to take €145M in credit for new trucks and trailers. The company claims the main aim of purchasing the new equipment, primarily DAF trucks and Schmitz Cargobull trailers, is “improving the working conditions of their drivers and maximizing safety on roads."

Girteka Logistics to buy new DAF trucks after big banks green-light up to €700 million in credit

In a statement, Girteka Logistics said it had received commitments of more than €700 million in credit for their 2021 and 2022 investment program, exceeding its initial requirements.

Tomas Kalvaitis, Treasury Manager at Girteka Logistics, says the high value of credit it was offered shows that banks have trust in the company:

“To have such an agreement reached in a global pandemic is a solid indication of the trust in our company and in our plans for sustainable development. The investment in the expansion of new trucks and trailers will firstly enable us to ensure the best working conditions for our employees focusing on drivers’ safety since the most modern, new fleet allow for the best work experience and enable the latest technological solutions to guarantee extra safety on roads. No less important new trucks stand out for low carbon dioxide emissions, providing us with an opportunity to significantly reduce our impact for the environment.”

Credit Suisse was the mandated lead arranger and coordinating bank, and was the first institution to grant Girteka Logistics credit, using export credit agencies as a guarantee.

After this agreement, other banks also entrusted Girteka Logistics with credit, notably Bayerische Landesbank (Germany), Citibank, N.A. (London Branch), DZ Bank AG (Germany), ING Bank, a branch of ING-DiBa AG (Germany), and Landesbank Baden-Württemberg (Germany).

According to Girteka, the loans were underwritten with export credit insurance cover from the Federal Republic of Germany and the Netherlands. The Export Credit Guarantees of the Federal Republic of Germany are managed by Euler Hermes Aktiengesellschaft and of the Netherlands by Atradius Dutch State Business NV.

Following the evaluation of the above institutions, Girteka Logistics received commitments of more than €700M, far exceeding its initial requirements. The Company opted to conclude financing agreements for €145M this year and is reviewing the possibility of further financing in the near future.

Kalvaitis added that Girteka Logistics has plans to be among the top ten logistics companies in Europe:

“By securing the investment program, we are also showing strong commitment to the partners that can deliver a fleet of several thousand trucks and trailers both this year and next. A fleet addition of such scale will also help our strategic dream – of being among the top ten logistics companies in Europe – come true even sooner.”

The funds will be used to purchase an undisclosed number of the latest truck and trailer models, with Girteka Logistics specifically mentioning DAF and Schmitz Cargobull.

Girteka says that those companies also played an important role in securing the investment, committing to a specific production output, and endorsing Girteka Logistics’ financial viability to follow through with the order.

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