Envestio informed today that a new investment opportunity is available at the portal to all registered participants.
The project is presented by the Investment Project Owner that is already familiar to Envestio participants – Latvian company NDINAMIKA SIA. By investing in the project “Production of Sawn Timber – part 6” it is possible to participate in the financing round for the production cycle of sawn timber products by a representative of European woodworking industry.
The loan is fully secured by commercial pledge and personal guarantee of the main beneficiary of NDINAMIKA SIA.
You can invest any amount starting from 1 EUR. Minimum deposit to the investment account is EUR 100.
If you invest for the first time at Envestio don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first nine months (270 days), more details HERE.
- High-yielding investment in woodworking sector, factoring-type financing for a sawn timber production/wood pellets trading company.
- Secured debt, 16,75% planned annual return.
- Investment principal buyback is available at 5% penalty rate.
The company NDINAMIKA SIA is a Latvian company that is successfully acting on the market of production and sale of sawn timber to local and international customers. Established in the year 2013, NDINAMIKA SIA is a well-known and experienced player on the Latvian woodworking market. Besides production of sawn timber, the company is also engaged into sale and delivery of wood pellets/biomass fuel to Latvian households, small agricultural complexes, and other consumers.
Sawn timber is being produced from the raw round timber, purchased directly from the owner of the forest sites. NDINAMIKA SIA has concluded long-term agreements with a number of companies and private individuals that ensures operational flexibility.
A standard production cycle includes:
- Inspection of the site, marking the trees
- Cutting down the trees in agreed volume using company’s equipment and vehicles
- Transportation of the raw round wood to the company’s warehouse, preparation for further processing
- Production of sawn wood using specialized tools and equipment
- Post-production treatment, packing, sale
The funds, attracted with the help of Envestio will be used for the purchase of raw round timber, financing the production process, and covering the time gap before the final payment is received from the customers.
In the first half of 2018 the overall situation in the sphere of supply of round timber has continued to improve. At the same time, assortment prices remain high, thus indicating insufficient supply of wood for further processing. As the “Forest and Wood Products Research and Development Institute” notes, the rapid increase in the prices of round wood in ports has reduced the availability of technological wood in the regions of Latvia.
Roundwood prices have risen noticeably not only in Latvia, but also in the Baltic neighbour states and Sweden. It should be noted that the increase in prices for pulpwood and saw logs in Sweden has not been as rapid as, for example, in Latvia.
The limiting supply of round timber and the high demand for wood due to climatic conditions, as a result of the increase in the prices of round timber, has affected the export performance of the industry.
In the 5 months of 2018 the amount of wood products exported from Latvia exceeded the indicator of the previous year by 21%. The value of exports of slab and plywood exceeded last year volumes by 4%, the export sales of sawn timber products remained at the same level, the volume of exported granules decreased by 14%. The export value of round timber climbed by 90%, firewood and chips – increased by 12%.
The volume of imported chips from Belarus has reached 215 thousand tons in the five months of this year (in the 5 months of 2017, 6.2 thousand tons). In its turn, the volume of chipped exports in the first five months of this year was 11% lower than a year ago.
The export of roundwood exported for cellulose to Sweden and Finland has almost doubled this year in the five months compared to the previous year, reaching 1.05 million m3 (0.54 million m3 in January-May 2017). It should be noted that the total timber exports are dominated by thin timber for the production of slabs and pulp. Thus, in the 5 months of 2018, from the total volume of round timber exported to foreign countries, about 70% was thin timber, which went to the Scandinavian paper industry.
In the second half of 2018, according to forecasts of general economic development, stable demand will remain in the largest markets for timber production sales.
Sample repayment schedule
Envestio participant’s investment – EUR 1 000.00
- 08.06.2019 – EUR 14.23
- 08.07.2019 – EUR 13.77
- 08.08.2019 – EUR 14.23
- 08.09.2019 – EUR 14.23
- 08.10.2019 – EUR 13.77
- 08.11.2019 – EUR 14.23
- 08.12.2019 – EUR 1013.77
Total expected return: EUR 1 098.23