Rietumu Banka has provided €17 million in financing for the development of Grow Energy group of companies. The transaction also involves related companies Lādes piens and Ecofuels as additional borrowers.
Grow Energy is a Latvia-based company located in the Limbaži municipality, operating in the renewable energy and agricultural sectors. The company has developed an integrated model that combines biomethane production, processing of animal by-products, and dairy farming.
Total financing package includes more than €9 million for refinancing existing liabilities, as well as approximately €7.4 million for the buyout of minority shareholders in the related companies. This transaction enables consolidation of the ownership structure and supports more efficient implementation of the company’s strategy going forward.
“Rietumu Banka’s long-term strategy is focused on targeted support for sustainable and green energy projects, promoting use of renewable resources and implementation of circular economy principles. The model developed by Grow Energy makes a significant contribution to Latvia’s energy independence and strengthens economic growth. As a financial partner, we highly value the company’s strategic vision, its ability to develop innovative solutions, and its long-term approach to business growth,” said Artūrs Jukšs, Member of the Board and Head of Crediting department at Rietumu Banka.
The main collateral for the loan consists of significant real estate assets, including a production facility with a liquefied biomethane capacity of up to 9 tonnes per day—one of only a few such facilities in the region. The collateral package also includes an animal by-product processing plant and related technical infrastructure, one of the largest dairy farms in Latvia with approximately 1,800 cows, as well as more than 1,500 hectares of agricultural land.
“Biomethane production from locally available organic resources enables the conversion of by-products generated within the farm into energy, which is used both in transport and within the farm itself, while reducing dependence on fossil resources. The financing provided by Rietumu Banka supports implementation of our company’s long-term development strategy, strengthening the integrated biomethane and agricultural business model,” said Kārlis Bunduls, Plant Manager at Grow Energy.
About Grow Energy
Grow Energy SIA is a sustainable energy company that combines biomethane production with agriculture, converting organic waste into high value-added energy. The company produces biomethane for transport fuel (bio-LNG and CNG) and electricity generation, providing low-emission solutions for the energy and mobility sectors. Grow Energy’s operations are based on circular economy principles, with the goal of advancing sustainable energy development in Latvia and export markets.