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. 

Needed amount of loan is 820,000 euros, interest rate per annum is 9% and loan will be repaid in 12 months. Interest payments will be paid every month and principal payments will be paid in the end of the loan term.  Right now is a good time to build a pellet factory because in Europe is a big need for heat energy. In Latvia is plenty of forest resources that can be processed to more develop product like pellets. Pellet production will be exported to Germany, England, Netherlands and Finland. 90 % of pellets will be exported and left 10% will be sold in home country Latvia. Little Latvia has become a wood pellet production superpower in recent decades. In 2022, we produced the third largest volume of pellets in the European Union and have become an important supplier of firewood to other countries. Latvia produces as many pellets as France or Sweden.
There are 27 pellet factories in Latvia.
The basis for the explosion of the pellet industry is the demand of Western European countries.
In Latvia, only a small amount of pellets remain, which are used for heating private houses. The rest is exported, and the lion’s share goes to the large power plants of Great Britain, Denmark and the Netherlands. In 2022, Latvia exported the largest volume ever – 2.2 million tons of pellets. Wood is recognized as a renewable energy resource in the European Union, so European countries, fighting against climate change, are replacing fossil fuel in their power plants with wood, or as it is called, biomass.
Pellets are one of the fastest ways to reduce that CO2 footprint. For example, replacing coal used for burning to generate heat or electricity. A huge new market could yet open up in Germany, which has also announced plans to move away from coal, and some German power plants are eyeing biomass. The planned production capacity at the plant will be 170,000 tons of wood pellets per year, the planned number of jobs will be 32. An additional railway track will be built near the plant. It is expected that up to 200 wagons with about 14 thousand tons of wood pellets will be transported by railway to Riga every month. This fuel is intended for export through the port of Riga, until the Baltic Sea is frozen, and later – through the port of Liepāja. The planned pellets factory will be built in Gulbene city where is plenty of available forest resources. 

This loan is backed by 1 pledge of commerce land plot that will be bought for this loan and developed for pellet construction.  Loan originator is paying down payment of 10 % for this land.  The current market value of the pledged land is estimated to be 1,533,400€ after developing. The borrower will repay the loan from refinancing loan. Projected factory construction and development costs after all project stages will be done will be about 25M.

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.