Loan ID 337

Heavy machinery purchase - 3 pieces of John Deer 810E forwarders

Loan ID 337

Target: 400,000

Loan type: Business

Interest rate: 13% p.a.

Term: 18 months

Location: Latvia

Interest payments: Paid every month

Collateral type: Heavy machinery

LTV: 77%

Skin in the game: 15%

Machinery cost: 460,000€

Security: Pledge on heavy machinery and group guarantee

Country: Latvia

Loan ID: 337

Loan originator: Zs Kazeri

Collateral type: Heavy machinery

Loan type: Business

Interest rate p.a.: 13%

LTV: 77%

Term: 18 months

NEEDED AMOUNT From investors: 400,000€

Machinery cost: 460,000€

Borrowers skin in the game(downpayment): 15% -60,000€

Loan purpose: To buy a forwarder for forest services John Deer 810E

Collateral: 3 pieces of John Deer 810E and Belarus 82.1 with forest trailer

Pledged collateral amount: 520,000€

Schedule: Interest payments will be paid every month, principal payments will be split on half, and will be paid every 12 months.

Dear investors we offer to invest in business what is sustainable in Latvia and makes profit. Company which needs investment are offering their services with heavy machinery in Latvia forests, they are carrying out timber like all kinds of pulpwood, lumber and branches for woodchip and they are cutting forest with heavy machinery too. Too expand their business bigger they have need for more heavy tractors to growth their service capacity. Needed amount of loan is 400,000 euros, interest rate per annum is 13% and loan will be repaid in 18 months. Interest payments will be paid every month and principal payments will be paid in 12 th and 18 th month of loan.

This loan is backed by 3 pledges of John Deer 810E forvarders -3 pieces and Forest tractor Belarus 82.1 with forest trailer . Loan originator is paying down payment of 15 % for this machinery. The current market value of the pledged machinerie is estimated to be 520,000€. The borrower will repay the loan from incoming business revenue.

The borrower will repay the loan from incoming business revenue and subsidy from Latvia rural department. Borrower company name is Zs Kazeri, registration number is 49501000919, address is Cesis district, LV-4116, Latvia , company is registered in 1991 year with already full 32 years of experience in forestry, renewable energy and agriculture production and services.

Zs Kazeri has a plan to become the largest forest producer in Latvia by 2030 and to export pellets, round timber, and briquettes, increasing the turnover to 700 million euros. To achieve this, it is necessary to increase the capacity, purchase machinery for forest development and build 3 pellet factories. Among the Baltic States, Latvia is the most covered with forests, which accounts for 50% of the entire country’s territory, so these goals are achievable and this will also increase Europe’s independence in terms of energy resources. Zs Kazeri has plans to increase the managed forest and agricultural area every year in order to achieve a stable export flow of forest products, and it would not be necessary to rely so much on private forest owners, who are the cornerstone at present, in order to grow the turnover of forest products.

Because of war in Ukraine the prices for energy is raised up and will continue to be steadily up that why energy business will be sustainable for long time now.

The European Union (EU) has set a goal for renewable energy through the Renewable Energy Directive (2009/28/EC). This directive outlines a comprehensive policy to encourage the production and use of energy from renewable sources within EU member countries. The EU aims to generate at least 20% of its total energy from renewables by 2020, with individual countries having specific targets to contribute to this overall goal. Additionally, all EU nations must ensure that at least 10% of their transport fuels are derived from renewable sources by the same deadline.

In December 2018, a revised version of this directive, known as 2018/2001/EU, came into effect as part of the Clean Energy for All Europeans package. This update is designed to maintain the EU’s leadership in renewable energy and, more broadly, support the EU in meeting its emissions reduction commitments under the Paris Agreement. You can find more details about this on the official EU website: https://ec.europa.eu/energy/en/topics/renewable-energy/renewable-energy-directive.

Latvian forests are mostly made up of conifers, however, other species also occupy a significant part. Conifer stands are 53% of all forest stands, birch stands – 30%, white alder – 7% and aspen – 7%.

The forest of 2023 in Latvia occupies an area of 3.1 million hectares (ha), or 52% of the land area, the report of the State Forestry Service for the year 2018. In just ten years, the forest area in the country has increased.
The territory of Latvia is 6.46 million hectares (ha), of which 3.35 million ha are forest lands (forest occupies 3.04 million ha). In comparison with other European countries, because in Europe the forest occupies an average of 33% of the land area, while in Latvia the forest land occupies 52%.

1.49 million ha (49%) of forest are under state management, forests of other managers make up 1.55 million ha (51%).

The service states that the annual report for the year 1923, when forest cover in Latvia was 23% of the total territory, by 2018 it has more than doubled. A small, gradual increase in forest areas can also be seen over the past ten years.

In 2008, there were 2.96 million hectares of forests in Latvia, or 50.2% of the entire country’s territory, but last year they were 52%.