Raising funds during the COVID-19 pandemic
Throughout the last 3 months since the COVID-19 pandemic has reached the Baltic states, local businesses have experienced unprecedented uncertainty, many have experienced strong restrictions on their way of doing business, and some have been forced to halt their activities completely. Fortunately, all three governments have been quick to put in place support programs providing tax holidays, employee downtime allowance, and direct financial help in the form of guarantees, loans and equity investments.
During this turbulent time, we are proud that Oaklins' team in Latvia has shown their flexibility by working closely with their clients and ALTUM, the Latvian state development finance institution, to help raise over EUR 4 million in working capital financing to their clients in building materials, wood and metal processing, and consumer wholesale and retail industries. ALTUM issues financing aimed at reducing the impact of COVID-19 of up to 3 years with a grace period of up to 1 year. With the help of Oaklins, our clients were able to quickly assess the impact of COVID-19 on their short-term and long-term financial plans, prepare crisis forecasts and analyze headroom for additional debt in regards to their existing financing facilities and covenants.
We see that in the current uncertain environment, the ALTUM working capital instrument is filling a financing gap that would otherwise severely impact the economy, as senior debt providers, similar to the businesses themselves, are facing high uncertainty and are not able or willing to increase exposure to their existing clients or evaluate new clients. It has been a pleasure working with ALTUM during this time and we can only praise their decision making pace.VALĒRIJA LIEĢE, PARTNER AT OAKLINS LATVIA
Talk to our specialists in Latvia
Oaklins' trusted senior advisors are entrepreneurs and highly experience finance professionals that have the skills and experience to deliver excellence for every client, from large listed companies to midsize private businesses. Our clients find that the faith they put in us is well placed, and that our results keep them on top.