TGS Baltic advised ALTUM Capital Fund on a EUR 10 million loan to hygiene product manufacturer iCotton.

26.10.2021 TGS Baltic advised ALTUM Capital Fund on a EUR 10 million loan to hygiene product manufacturer iCotton.

TGS Baltic advised ALTUM Capital Fund on a loan of EUR 10 million to the eco-friendly hygiene product company iCotton, which employs 800 people at the group's plants in Latvia and Poland and had a turnover of EUR 80 million last year.

In the virus pandemic, iCotton, which sells 98% of its production in export markets, faced supply chain disruptions, rising logistics costs and changing payment terms. At the same time, the pandemic boosted demand for the company's hygiene products. iCotton customers include many of Europe's leading retail chains.

The financing of the capital fund will strengthen the company's cash flow and promote further growth by introducing new, environmentally friendly products from ecological raw materials, maintaining a virtually waste-free production process.

The transaction relates to Latvia and Poland.

TGS Baltic provided legal support to ALTUM Capital Fund in connection with the preparation, negotiation and signing of transaction documents in accordance with Latvian law and regarding Latvian jurisdiction.

Representing ALTUM Capital Fund participants, TGS Baltic partner Inese Hazenfusa and associate Mārtiņš Galzons advised on the transaction.

ALTUM about the deal

Reinis Bērziņš, Chairman of the Board of ALTUM:

"iCotton is characterized by a modern production base and continuous investment in development. We are pleased to make this  financing of the Capital Fund and support this flagship of Latvian exports, helping to overcome the impact of Covid-19 and increasing its ability to attract new investments in the future and further increase its operations. The total amount of transactions concluded by the capital fund has already reached 33 million euros and the fund is actively working on the preparation of future transactions. ”

For more information about Altum Capital Fund, please refer to

iCotton about the deal

Sergey Binkowski, Chairman of the Board of iCotton:

“Cooperation with ALTUM Capital Fund financing will allow us to implement future development plans and continue stable work on the implementation of new projects. We will have the opportunity to produce and develop new product technologies, on new, modern production facilities, providing additional new jobs.”

ALTUM Capital Fund is cooperating with the existing iCotton financiers Blue Orange Bank and Polish mBank as a part of the transaction.

The company iCotton started the production of hygiene products in Liepāja in 2012. In 2020, the turnover of the group reached 80 million euros. The group is one of the leading manufacturers of hygiene products in the Eastern Europe and its end products include cotton swabs and other cotton products, wet wipes, as well as the production of raw material - non-woven cotton fabric. In order to provide a modern and innovative production base, the company's production plant in Liepāja was rebuilt in 2016, investing more than 8 million euros, while in 2021 another new production plant started operating in Liepāja. The company's customers include Europe's leading retail chains Roosmann, Carrefour, Rimi, Maxima, Biedronka, Kaufman, etc.

The capital fund is one of ALTUM's financial instruments for overcoming the impact of Covid-19 on the companies that are ready to adapt their current operations by changing the business model, adapting product development, introducing new technologies, entering new export markets, as well as promoting their growth. The total amount of the fund is 100 million euros, a half of which is public funding and the other half is private pension funds. ALTUM Capital Fund can invest up to € 10 million in corporate capital, corporate bonds or loans, as in the case of iCotton Group.

For more information about iCotton, please refer to

More detailed information about the deal in Latvian: