Ukio Bankas AB : Ukio bankas financial solution enabled modernisation of Panevežys Bus Fleet

2012-11-29

Six hybrid buses, the only of such kind in Lithuania, are already on the streets of Panev??ys - they were acquired by UAB Panev??io autobus? parkas upon using ?kio bankas financing and support from EU Structural Funds. Factoring financing in the amount of LTL 9.58 million extended by ?kio bankas allowed the company to successfully participate in a project supported by EU Structural Funds and Special Climate Change Programme. Therefore, another nine buses fuelled by compressed natural gas will start running on Panev??ys streets in the near future - the city will have altogether 15 modern and economic city buses.

The total value of new Panev??io autobus? parkas buses amounts to LTL 15 million, but the company will have to pay less than LTL 3 million as the remaining part of this amount is paid with the funds of awarded projects. Back last year the company was in imminent danger of insolvency due to an increasing debt of Panev??ys Municipality that could have prevented the company from successful use of co-financing from EU Structural Funds. The situation was resolved by taking advantage of ?kio bankas proposal.

"Following an analysis of the company's situation we have evaluated the financial challenges faced by a company that lacks working capital. We have agreed on an optimal solution for the client - to use factoring service. We have decided that this will give a strong stimulus to the activities of the company that seeks to use EU support. Today the result achieved through appropriate use of financial instruments is already seen by Panev??ys residents and guests - convenient and nice as well as more eco-friendly buses are running on Panev??ys city," maintains Antanazas Kazys Liorentas, Manager of ?kio bankas Panev??ys Branch.

In the words of Rimantas Petukauskas, Director-General of Panev??io autobus? parkas, the new diesel-electric buses Solaris Urbino 12 Hybrid is a novelty in Lithuania but their benefit have already been appreciated by both the passengers and the city bus fleet.

"This investment by our bus fleet should be clearly evaluated positively in all aspects. The list of advantages of the new buses is long: they are modern, comfortable, safe, nice, but the most important advantage is their high cost-effectiveness and eco-friendliness. Compared to city's other buses their fuel consumption is lower by a fourth," Panev??ys Bus Fleet Director-General says.

As noted by Mr Petukauskas, if not for a timely support from ?kio bankas, most probably we would have missed the possibility of using beneficial co-financing by the EU Cohesion Fund.

"In search of a solution we contacted nearly all banks of Lithuania, but it was ?kio bankas that offered the way out. We highly appreciate their professionalism and flexibility that enabled rejuvenation not only of the city's bus fleet but also streets on which the new hybrid buses are now running," maintains Mr Petukauskas.

?kio bankas is Lithuania's first commercial bank having provided reliable services via its wide client service network, with nearly 60 units all over the country, for a third decade already. ?kio bankas maintains close cooperation relationships with business enterprises by providing them with relevant financial solutions and proposals. The Bank in particular focuses on small and medium-sized businesses and enterprises working in the regions of the country.