Ellex in Estonia advised KredEx on a EUR 37 million loan to Alexela Varahaldus

Fuel company Alexela Varahalduse AS and state credit body KredEx reached an agreement for a coronavirus loan of €37 million, allowing the company to maintain more than 500 jobs at oil shale producer Kiviõli Keemiatööstus, managed by Alexela Group.

KredEx chief Ivo Kuldmäe said it is important to support companies all over Estonia and to offer them support to allow them to bypass difficulties stemming from the coronavirus crisis. New investments are also important.

Kuldmäe said: “Along with the crisis measures, we have made more than €452 million available to 778 entrepreneurs. Some of that has gone to overcome coronavirus difficulties, but some of it also has gone to making necessary investments for business development.”

The freshly appointed KredEx chief added: “The key of putting crises behind us always lies in cooperation, which is why companies, banks and the state must work together to overcome difficulties and realize new opportunities. The loan given to Alexela allows us to maintain more than 500 jobs in Ida-Viru County, making up almost a third of all concern employees. It is a good example of just this type of cooperation.”

The loan agreement sees 40 percent of Alexela Varahalduse AS’ shares as collateral and the collateral is also supplemented by Alexela group resources. Alexela must maintain the aforementioned 500 jobs at Kiviõli Keemiatööstus as per conditions of the agreement.

KredEx has granted loans to businesses of all sizes hit by the coronavirus pandemic, most notably €100 million to shipping line and hotels operator Tallink, €39 million to real estate development Porto Franco and €10 million to aircraft maintenance firm Magnetic MRO.

Ellex team in Estonia who advised KredEx on the deal included Partners Ermo Kosk and Martin Mäesalu, and Counsels Toomas Kasesalu and Rain Raa.

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