South Korean fund loans EUR 20 mln to Lithuanian-owned non-banking financing company

SME Finance, a Lithuanian-owned non-banking financing company that focuses on invoice lending, has secured a 20-million-euro loan from an unnamed South Korean fund, the business daily Verslo Zinios reported on Tuesday.

SME Finance Mindaugas Mikalajunas says the loan is important news for Lithuanian small and medium-sized businesses.

"Until now, we could provide a limit of up to 2 million euros per client, and the new investment will enable us to increase it to 5 million euros. Lending will become cheaper, too," he told the paper.

SME Finance's financial resources now comprise a 10-million-euro credit facility from a UK fund, 20 million euros raised via private bond placements, equity capital worth 5 million euros, and the loan from the South Korean fund.