Signet Bank invests 3 million euros in EIF Financing Fund,supporting SME agricultural development

Signet Bank’s goal is to promote the accessibility of financing for Latvian entrepreneurs and businesses, especially those developing economically significant sectors. The 3 million euro investment in the EIF Financing Fund is another step in implementing this strategy, providing additional capital for the development of small and medium-sized (SME) agricultural businesses.

The fund was established by alternative investment fund manager ASP Asset Management. The fund’s resources of 3 million euros will be directed to LANDE, a specialized agricultural lender, which will then issue loans to farmers who qualify for the European Investment Fund (EIF) guarantee program. LANDE has reached an agreement on EIF guarantees for such financing.

The investment in the EIF Financing Fund is a natural continuation of our lending strategy to strengthen the competitiveness of local entrepreneurs and promote the targeted flow of capital into the real economy – precisely where it is needed most. Through this investment, we are creating an innovative financing model that combines the bank’s capital, the fund’s expertise, and the European Investment Fund’s guarantee mechanism. This significantly reduces barriers to development for entrepreneurs and improves access to capital in the agricultural sector, creating the conditions for sustainable development,

explains Roberts Idelsons, CEO of Signet Bank.

ASP Asset Management specializes in alternative investments, project financing, and start-up financing. With the establishment of the EIF, the manager is launching operations in debt instrument financing.

The EIF Financing Fund introduces a new way of small lending transactions while maintaining a risk management mechanism that complies with banking requirements. This solution is effective, has a lower administrative burden, and thus offers higher returns. By establishing this fund, ASP Asset Management is expanding its activities beyond start-up financing, which has been its main focus to date,

explains Ansis Spridzāns, Chairman of the Board of ASP Asset Management.

The LANDE platform has issued more than €45 million in loans to date and is expanding access to financing for SMEs in the Baltic States. The company’s goal is to provide simpler and faster access to capital for those working in manufacturing and agriculture.

The partnership is based on three elements: institutional financing from Signet Bank, a professionally managed alternative investment fund, and the EIF guarantee system. This allows for a significant expansion of lending to farmers, who often lack access to traditional bank financing.

About EIF Financing Fund:

EIF Financing Fund is an alternative investment fund established in cooperation between LANDE, Signet Bank and ASP Asset Management. The fund provides financing for agricultural loans in Latvia and Lithuania, with transactions covered by the EIF principal guarantee. The total committed amount of the fund is EUR 3,000,000

About ASP Asset Management:

ASP Asset Management is an alternative investment fund manager founded in 2022. To date, the company has focused on servicing investment transactions for start-ups created by members of the Latvian Business Angels Network. With its help, a total of 14 Baltic start-ups have already received funding. The network also established Outlast Fund I AIF and Buildit 5G Fund AIF , which now are among the largest private financiers in Latvia,  indirectly ensuring the availability of up to EUR 40 million in financing for the start-up sector. Ansis Spridzāns is a member (100%) of ASP Asset Management AIFP.

About Signet Bank:

Signet Bank is Latvia’s leading investment bank, founded in 1991 and one of the first independent banks in Latvia. Signet Bank offers sustainable financing and investment solutions to local entrepreneurs and companies. Since 2021, Signet Bank has attracted additional financing of EUR 1 billion for more than 50 Latvian companies through bond and share issues, while new lending transactions amounted to EUR 380 million. In 2024, the financial resources under management reached EUR 1.6 billion. Signet Banka is the leading organizer of corporate bond and share issues in Latvia and one of the leading stock exchange brokers in the Baltics. Signet Bank’s shareholders are eighteen Latvian and international private investors, the largest of which are Signet Acquisition III (22%), whose sole shareholder is US investor Alexander Solovey, SIA Reglink (14%), founded by banking professional Irīna Pīgozne, and AS RIT Group (11%), a Latvian company owned by the Rapoport family.