AB Akola Group – Annual report – 30 June 2026
Industry: agriculture
27.17 Borrowings (extract)
Compliance with the covenants of the borrowing agreements
The Group has loan agreements with financial institutions. The classification of these borrowings as non-current depends on the Group’s compliance with certain financial covenants.
As of 30 June 2026, the loan agreements applicable at the consolidated Group level include the following subsequent key financial covenants, for which compliance will be tested within the next 12 months:
• RMI adjusted debt level – not higher than 5;
• Net Debt / EBITDA – not higher than 6.5;
• Long-term debt / EBITDA – not higher than 2.5;
• Equity to Total Assets ratio – must exceed 30%.
As at 30 June 2026, all Group companies were in compliance with the covenants and other requirements set out in their financing agreements, except for the cases described below:
As at 30 June 2026, the Group companies UAB Akola Farming, Lukšių ŽŪB, Labūnavos ŽŪB, Sidabravo ŽŪB, Aukštadvario ŽŪB, Žibartonių ŽŪB, Nemuno ūkis ŽŪB, Medeikių ŽŪB were not in compliance with certain covenants under the financing agreements with Luminor Bank AS, specifically the Debt Service Coverage Ratio (DSCR), Net Financial Debt to EBITDA ratio. As a result, EUR 7,514 thousand of non-current borrowings were reclassified to current liabilities at the reporting date. Following the reporting date, the Group entity initiated actions to remedy the breaches of the contractual covenants. The Group Companies have received the waiver after the end of the financial year, that no sanctions will be taken for non-fulfilment of contractual conditions.
As at 30 June 2026, OU Linas Agro was not in compliance with the capital ratio covenant under its credit agreement with AS SEB Bank. As the financing arrangement is an overdraft facility, the related liabilities were not reclassified. Following the reporting date, the Group entity initiated actions to remedy the breach of the contractual covenant. The Group Company has received the waiver after the end of the financial year, that no sanctions will be taken for non-fulfilment of contractual conditions.
As at 30 June 2026, the Group entities UAB Dotnuva Baltic, AS Dotnuva Baltic and SIA Dotnuva Baltic were not in compliance with certain covenants under the credit agreements with AS Luminor Bank and AB Luminor Bank, specifically the Group entities’ long-term financial debt to EBITDA ratio and interest coverage ratio requirements. As a result, EUR 908 thousand of non-current liabilities were reclassified to current liabilities at the reporting date. Following the reporting date, the Group entities initiated actions to remedy the breaches of the contractual covenants. The Group Companies have received the waiver after the end of the financial year, that no sanctions will be taken for non-fulfilment of contractual conditions.
At 30 June 2025 all Group companies complied with all covenant’s requirements, except those mentioned below:
As at 30 June 2025, the Group companies UAB Dotnuva Baltic, AS Dotnuva Baltic and SIA Dotnuva Baltic were not in full compliance with certain conditions stipulated in their loan agreements with AS Luminor Bank and AB Luminor Bank. The Group companies have received the waiver before the end of the financial year, that no sanctions will be taken for non- fulfilment of contractual conditions.
As at 30 June 2025, the Group company Lukšių ŽŪB did not comply with certain conditions under its loan agreement with AB SEB Bank. The Group Company has received the waiver before the end of the financial year, that no sanctions will be taken for non-fulfilment of contractual conditions.
27.18 Lease liabilities (extract)
Compliance with the covenants of the lease liabilities:
As at 30 June 2026, the Group companies UAB Akola Farming, Lukšių ŽŪB, Labūnavos ŽŪB, Sidabravo ŽŪB, Aukštadvario ŽŪB, Žibartonių ŽŪB, Nemuno ūkis ŽŪB, Medeikių ŽŪB were failed to comply with certain contractual covenants (Note 27.17) under agreements with Luminor Bank AS. Consequently, 1,082 thousand of non-current lease liabilities were reclassified to current lease liabilities at the reporting date. Subsequent to the reporting date, the Group company undertook initial measures to cure the covenant breach. The Group Companies have received the waiver after the end of the financial year, that no sanctions will be taken for non-fulfilment of contractual conditions.
As at 30 June 2026, the Group companies UAB Dotnuva Baltic, UAB Dotnuva Rent and AS Dotnuva Baltic failed to comply with certain contractual covenants (Note 27.17) under agreements with UAB Luminor lizingas and AS Luminor Liising. Consequently, 1,592 thousand of non-current lease liabilities were reclassified to current lease liabilities at the reporting date. Subsequent to the reporting date, the Group companies undertook initial measures to cure the covenant breach. The Group Companies have received the waiver after the end of the financial year, that no sanctions will be taken for non-fulfilment of contractual conditions.
As at 30 June 2025, the Group companies UAB Dotnuva Baltic and UAB Dotnuva Rent and AS Dotnuva Baltic have not fulfilled part of conditions under agreements UAB Luminor lizingas and AS Luminor Liising. The Group Companies have received the waiver before the end of the financial year, that no sanctions will be taken for non-fulfilment of contractual conditions.
As at 30 June 2025, the Group companies Aukštadvario ŽŪB, Labūnavos ŽŪB, Lukšių ŽŪB, Sidabravo ŽŪB, Žibartonių ŽŪB, Medeikių ŽŪB, Nemuno ūkis ŽŪB, UAB Landvesta 1, UAB Dotnuva Rent, UAB Dotnuva Seeds, UAB Akola Farming have not fulfilled part of conditions under agreements AB SEB Bank The Group Companies have received the waiver before the end of the financial year, that no sanctions will be taken for non-fulfilment of contractual conditions.
