Lidl will use the loan to expand its store network in Lithuania. Credit: Nordic Investment Bank.

Supermarket chain UAB Lidl Lietuva has entered into a loan agreement with Finland-based Nordic Investment Bank (NIB) to raise €50m ($56.67m).

The bank is offering the loan with a maturity of ten years, which will be used to expand the retailer’s store network in Lithuania in the coming years.

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Lidl will establish all the new stores according to its energy efficiency measures. The stores will feature automated building controls and heat recovery in the ventilation systems.

“The expansion is in line with Lidl’s growth strategy in the Baltic countries.”

NIB president and CEO Henrik Normann said: “The expansion is in line with Lidl’s growth strategy in the Baltic countries. Food products account for a significant share of Lithuanians’ household expenditure, so market diversification will have an impact on disposable income.”

Lidl is part of the Germany-based Schwarz Group, which also operates Kaufland grocery retail chain. It currently operates more than 10,000 stores in 29 European countries and in the US.

The retailer entered Lithuanian grocery market in June 2016 and expanded its presence with 35 stores and one warehouse by the end of last year.

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Last Month, Lidl US signed an agreement to buy 27 grocery stores of Best Market in New York and New Jersey for an undisclosed amount.

With this deal, the company expects to expand its regional presence, serve more customers in the region as well as enter a new market in Long Island.

In September this year, the German supermarket chain announced plan to open five stores by the end of this year and an additional 15 next year in Romania.