Girteka Logistics secures €145M to renew and expand fleet while improving driver working conditions and road safety
The largest asset-based transportation company in Europe, Girteka Logistics, has signed an agreement with a syndicate of banking institutions in Europe to secure €145M to invest in new fleet acquisition in 2021, in the aim of improving the working conditions of their drivers and maximizing safety on roads. Following the evaluation of multiple export credit agencies and banking institutions, Girteka Logistics received commitments of more than €700M for their 2021 and 2022 investment program, exceeding the initial requirements. Girteka Logistics was also the first company in the Baltic region to ever use Export Finance program for new fleet acquirement, until now mostly aimed for financing new production equipment.
“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”, comments Tomas Kalvaitis, Treasury Manager at Girteka Logistics.
Credit Suisse (Switzerland), a leading financial services company, was the mandated lead arranger and coordinating bank, and 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). 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 the 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 notes, “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 investment will be used to purchase an undisclosed number of the latest truck and trailer models manufactured by world-class producers, such as DAF and Schmitz Cargobull. These 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.
Over the last 25 years, Girteka Logistics has scaled up from one man’s idea to the largest asset-based transportation company in Europe. This investment is considered a significant achievement, both a reflection of the company’s history and reinforcement of Girteka Logistics’ position in international markets.