Tag Archives: Latvia

New high-yield Envestio project – Production of Sawn Timber – part 2

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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 2” 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.

Investment opportunity

  • High-yielding investment in woodworking sector, factoring-type financing for a sawn timber production/wood pellets trading company.
  • Secured debt, 20,5% planned annual return.
  • Investment principal buyback is available at 5% penalty rate.

Project description

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.

Market

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%.

Sample repayment schedule

Envestio participant’s investment – EUR 1 000.00
Payments:

  • 07.12.2018 – EUR 16.85
  • 07.01.2019 – EUR 17.41
  • 07.02.2019 – EUR 17.41
  • 07.03.2019 – EUR 15.73
  • 07.04.2019 – EUR 17.41
  • 07.05.2019 – EUR 1016.85

Total expected return: EUR 1 101.66

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You can now invest in Latvia-issued loans from Creamfinance on Mintos p2p platform

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Creamfinance has expanded its offering on Mintos peer-to-peer lending marketplace as it has just placed Latvia-issued short-term and instalment loans for investment. Creamfinance has been ranked as the second-fastest growing company in Europe by the prestigious Inc. 5000 Europe ranking and you can invest in its loans from Latvia on the marketplace now and enjoy returns of up to 10%.

Consumer finance services provider, Creamfinance, was founded in 2012 in Latvia and has experienced consistent and fast growth ever since. The mission of Creamfinance is to make funds easily available to its borrowers. This is achieved by providing consumer loans online in a convenient and fast manner. The company utilises advanced algorithms and machine-learning capabilities to quickly evaluate and score its borrowers. Once borrowers apply for a loan, the average time it takes for the company to assess their creditworthiness is 50 seconds. In addition, it also offers a highly customised approach to its personal loan process and aims to become a one-click loan provider to consumers globally. As a result, the company has already attracted more than 93 000 customers in Latvia.

“Fintech is drastically changing our everyday lives and the business environment, especially during recent years. In addition to classic banks, the modern Fintech world includes increasingly more and sometimes much advanced financing solutions that bring together people with extra money with those who require it. We are confident that experience of Creamfinance Latvija in various countries around the world, the millions of customers and the state-of-the-art technology will provide added value and new opportunities for customers and businesses, who “meet” in Mintos platform, a business model of future available already today,” says Līga Treiliha, the CEO of Creamfinance Latvia.

On Mintos, you can invest in Creamfinance Latvia’s short-term and instalment loans listed in EUR. The average loan is EUR 350 and the repayment period is up to 14 months. You can expect a net annual return of up to 10%.

All loans from Creamfinance Latvia will come with a buyback guarantee and will be repurchased if the loan is delinquent for 60 days or more. To ensure its interests are aligned with investors on Mintos, it will also maintain 5% of each loan placed on Mintos on its balance sheet.

As of December 31, 2017, Creamfinance Group had an outstanding net loan portfolio of more than EUR 40 million and achieved an annual revenue of EUR 44 million. By the end of 2017, Creamfinance had issued total principal amounting to over EUR 400 million since 2012.

Creamfinance also announced recently that its key strategic investor – Capitec Bank – increased its involvement in the Company. The initial investment agreement was signed in March 2017, and stated that Capitec Bank would acquire a 40% stake in the Creamfinance Group for the total of EUR 21 million in three tranches. The first tranche was paid in March 2017 (EUR 6.7 million). As a result of meeting of the financial covenants agreed in 2017, Creamfinance received the next capital injections of EUR 3 million each in June 2018 and September 2018 together constituting the second tranche . The increased investment from such a major player confirms Creamfinance’s reputation as a reliable loan originator on Mintos.

Currently, Creamfinance operates in seven countries – Latvia, Poland, Czech Republic, Georgia, Denmark, Spain and Mexico and has an IT office in Austria.

To obtain exposure to Creamfinance loans, investors will be able to invest in loans issued by Mintos Finance to Creamfinance, where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Creamfinance will be pegged to a respective loan issued by Creamfinance to the final borrower. Mintos Finance is a Mintos group company.

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New investment project in Latvia announced by Bulkestate – Apartment in “Sun Terraces” – Launch 16 october 2018

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Bulkestate announced today that it is preparing to launch a new investment project in Latvia.

Launch time: Tuesday / 16 October 2018 / 17:00 (EEST)

Project information:

Interest rate: 16%
Investment target: 270,000 EUR
Loan period: 12 months
Loan to value: 70%
Security: Mortgage
For this project Bulkestate offers the following special incentive pay (cash-back) for investors by sharing part of its fee received from the client:

  • Investors making EUR 10,000 or larger investment will receive 1% incentive payment from the invested amount, while
  • Investors making EUR 25,000 or larger investment will receive 2% incentive payment from the invested amount.
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New Envestio project – Wood pellets – trade financing 2

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Envestio informed today that a new investment opportunity is available at the portal to all registered participants.

By introducing project “Wood pellets – trade financing 2″, Envestio continues the successful cooperation with the representatives of the environmental-friendly energy 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.

Investment opportunity

  • High-yielding investment in energy sector, factoring-type financing for a wood pellets trading company.
  • Secured debt, 21% planned annual return.
  • Investment principal buyback is available at 5% penalty rate.

Project description

The company NDINAMIKA SIA is a company that is successfully acting on the market of sale and delivery of wood pellets/biomass fuel to Latvian households, small agricultural complexes, and other consumers. Taking into consideration increasing prices for traditional fuel, such as natural gas and oil products, the demand for wood pellets is constantly increasing that provides good business opportunities for the market players.

Besides pricing, one more key factor that affects demand is absence of complex and pricey requirements to the heating system of the household. Burning pellets in an ordinary stove can perfectly heat a small and medium size (up to 150 m2) private house; no special gas or oil boiler or generator is necessary in that case. Pellets are easy to transport and store, they do not require a connection to centralized supply system, and have relatively high energetic efficiency.

Installation of a special pellet stove allows using pellets as fuel also for small industrial and agricultural complexes. Specialized pellet stove ensures higher efficiency than ordinary stoves and is comparable to gas boilers.

Pellets are mostly produced from local wood that ensures maximum utilization of this renewable resource. Pellet heating is considered to be one of the most environment-friendly, as it does not create excessive pollution, produces a very small amount of waste (which is traditionally used as a fertilizer by many households) and ensures full utilization of timber, processed by woodworking factories. Pellets are produced by chopping the pieces of wood into powder that is afterwards dried and processed in a granulator mill (pellet-mill) that forms it into pellets.

Established in the year 2013, NDINAMIKA SIA sells and delivers wood pellets to the final customers across the Latvia. Current business scheme assumes purchasing the stock of pellets during the low season (summer) and gradually selling it to the households and business consumers during the high season (autumn and winter).

The need for additional funds is justified by current situation on the Latvian biomass fuel market that is characterized by high seasonality and continuously growing demand for wood pellets, woodchips, and wood briquettes. Summer season is characterized by lower prices at which the fuel is available for purchase from the producers, however, up to 6 months payment delay from the final customer has to be faced in that case.

Covering this gap with the help of Envestio financing will allow purchasing additional stock now and getting extra profits during the winter season, when the price of woodchips reaches its maximum, and repay the investment principal to Envestio participants.

Market

During the last years Latvian market for biomass fuel that includes wood pellets, woodchips, wood briquettes, and similar products was characterized by increasing demand for the qualitative product. The size of Latvian woodworking industry, which is the main internal supplier of the raw materials for further processing, remains relatively stable; at the same time, the number of customers has been increasing almost exponentially.

While cogeneration power plants and producers of wooden pellets are looking to purchase growing amounts of the raw materials, a bigger number of consumers is looking to purchase biomass fuel for their business and private needs. Given the constant supply and increasing number of foreign customers from countries like Estonia, Lithuania, and Poland this logically results in price increase and even product shortage on the market.

Besides the increasing demand the market also faces extreme seasonality. Wood pellets can be purchased at cheaper price during the summer, at the same time, during the winter not all customers can handle the price growth (and still there is an excessive demand). In these conditions, a company that can purchase the wood pellets during the low season, store those in a dry warehouse thus preserving the quality, and sell during the period of higher prices may achieve extra profits.

Sample repayment schedule

Envestio participant’s investment – EUR 1 000.00
Payments:

  • 17.10.2018 – EUR 17.26
  • 17.11.2018 – EUR 17.84
  • 17.12.2018 – EUR 17.26
  • 17.01.2019 – EUR 17.84
  • 17.02.2019 – EUR 17.84
  • 17.03.2019 – EUR 1016.11

Total expected return: EUR 1 104.15

 

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New investment project in Latvia announced by Bulkestate – Luku Street II – Launch 17 september 2018

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Bulkestate announced today that it is preparing to launch a new investment project in Latvia, Riga.

Launch time: Monday / 17 September 2018 / 16:00 (EEST)

The property is located in Mārupe, which is one of the closest private housing areas to Riga. The main advantage of the region is the convenient traffic to the city centre, international airport and the seaside, at the same time preserving the green neighbourhood characteristic of the outskirts of the city.

Project information:

Interest rate: 13%
Investment target: 58,000 EUR
Loan period: 12 months
Loan to value: 50%
Security: Mortgage
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New investment project in Latvia announced by Bulkestate – Nometnu Street – Launch 28 august 2018

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Bulkestate announced today that it is preparing to launch a new investment project in Latvia, Riga.

Launch time: Tuesday / 28 August 2018 / 17:00 (EEST)

Project

Bulkestate OÜ has signed a purchase agreement for a property (land 2,077 square metres and building) located on Nometnu 18, Riga. The property is a part of Riga’s famous Art Noveau collection, a 4-storey apartment building in the Āgenskalns district. The surrounding area is a mix of residential houses and light commercial facilities. It is a convenient location, only 10 minutes away from the city centre and 15 minutes from the Riga airport. The building was owned and managed by the University of Latvia as a residential property.

The property includes 12 apartments and two commercial premises as well as an adjacent wooden building. All apartments and the wooden building have been reserved by buyers with contracted sales revenue 866,000 euros and 86.6 thousand euros paid to Bulkestate as a reservation deposit.

Location, quality of the building and significant discounts to the market price have facilitated fast sales process and high commitment from the buyers to complete the purchase.

Commercial premises will be sold after completion of apartment sales process. The expected sales price for these is 250 thousand euros.

Loan

The loan amount will comprise EUR 800,000 and will carry a 17% annual interest rate.

The loan will be used to finance payment of purchase price and transaction costs and will be repaid by payments for sold apartments.

Security

The loan is secured by a first rank mortgage on the building. The market price of the building has been defined as EUR 1,400,000 (LTV ratio is 57%).

The borrower

For technical reasons, loan agreement will be signed by LP Private Property SIA (a company controlled by Bulkestate OÜ) who will lend these funds to Bulkestate OÜ to pay the sellers of the building and associated transaction costs.

All funds received by Bulkestate from investors will remain at Bulkestate and will be directly used to complete the acquisition of the property.

Repayment schedule

Loan and accrued interest will be paid within 3 months.

*Bulkestate incentive payment

For this project Bulkestate offers the following special incentive pay (cash-back) for investors:

  • Investors making EUR 10,000 or larger investment will receive 1% incentive payment from the invested amount (representing 4% annual interest rate), while
  • Investors making EUR 25,000 or larger investment will receive 2% incentive payment from the invested amount (representing 8% annual interest rate).

 

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New investment project in Latvia announced by Bulkestate – Barona Dainas II – Launch 10 july 2018

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Bulkestate announced today that it is preparing to launch a new investment project in Latvia.

Launch time: Tomorrow / 10 July 2018 / 16:00 (EEST)

The second phase of the project ‘Barona Dainas’ follows as the borrower has successfully completed the purchase of the property.

Interest rate: 18%

Investment target: 50,000 EUR
Loan period: 12 months
Future loan to value: 33%
Security: Equity

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New investment project in Latvia announced by Bulkestate – Launch 6 july 2018

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Bulkestate announced today that it is preparing to launch a new investment project in Latvia.

Launch time: Tomorrow / 6 July 2018 / 16:00 (EEST)

The property is a 2200 m2 large land plot on Lūku Street, in Mārupe district. The land plot is intended for private house construction. Mārupe is one of the closest private housing areas to Riga.

Interest rate: 13%

Investment target: 35,000 EUR
Loan period: 6 months
Loan to value: 49%
Security: Mortgage

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Real estate projects – unused potential of investments in the Baltic States

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In Envestio portfolio you will find some projects wich are located in Baltic States. Is it safe to invest in these projects? First of all it depends on economic growth and economic growth forecasts in these countries.

What are forecasts of economic development of the Baltic States?

Estonia, Latvia and Lithuania as open economies gain profit from rapid cyclic acceleration and growth of world trade. Based on the IMF World Economy report, it is expected that annual growth both in 2018 and in 2019 will achieve record of seven years or 3.9%. Global recovery currently happens much more steadily and has solidified all over the world, besides global entrepreneurship confidence level is record high, which respectively affects further rise of the internal demand an d improves the labour market.
Only geopolitical tension and risk of political uncertainty are two factors that may cause potentially negative effect on total positive external demand of the Baltic States. Despite strong prospective of growth, Europe is directly affected by Brexit. However, direct influence of the United Kingdom’s trade links on the Baltic States still remains limited. Speaking about risks, conflicts about trade can also decrease record high level of economic optimism and global trade.

Unusually powerful rise is forecasted for the Baltic States, providing that the growth rate will only normalize starting from 2019.

On the favourable external background, in the last year Estonia and Latvia achieved growth rate of over 4% (4.9 % and 4.5 % compared to the previous year, respectively), and Lithuania showed stable annual growth of GDP – 3.8 %. Similarly to other countries of the Eurozone, cyclic recovery has gained speed, and it is forecasted that the biggest contribution to the growth of countries in the next year will be provided by the domestic demand.
Eurozone annual growth in 2018 will be 2.3%, it supports the growth rate in the Baltic States that will be above the maintained long-term rate, however it will gradually slow down due to basic effects and exhausting of yet unused reserves of resources. It is expected that export growth from the initial powerful acceleration will come to the normal level and will include both products and services, providing that increased growth will take place exactly in sector of services. Growth restrictions will first be reflected in the labour market, while lack of qualified labour grows.

Economic bases of the Baltic States are still stable, finances of the countries are almost balanced and public debt levels are the lowest in the whole Eurozone. Estonian, Latvian and Lithuanian main future challenges mostly are of structural nature and are related to challenges in acceleration of productivity and growth of added value.

Baltic States will still be ones of the most rapidly growing Eurozone countries, with shrinking significant income difference compared to the European trade partners.

In this long-term adventure we must avoid temptations in respect of excessive domestic stimuli. Quite the other way, long-term growth is based upon complex choices, for instance, in the smart specialization, development of innovations and technologies, in order to promote export and profit. Increase of research and development (R&D) expenses in the private sector, strengthening of the ecosystem of small and medium companies and new companies and especially investments in human capital are examples of modern solutions that must be further used, in order to gain maximum benefit from the next decade’s global technological and digital bull race. Revenue of sectors of globalized technologies will still exceed forecasts.

Real estate projects – unused potential of investments in the Baltic States

Today we can say with confidence that investments in real estates of the Baltic region are the most profitable and efficient way to not only keep, but also multiply cash assets.
Situation in Europe also slowly improves. Stress caused by the refugee crisis decreases, besides economic factors of the European countries also slowly improve. Since main investors in the Baltic States come from the EU countries, their opinion of further growth prospective has increased and optimism slowly grows. In truth the United Kingdom’s departure from the EU is still ahead. However, it will probably cause investors to look for new places to invest money and create new companies in the EU. And one of the most prospective opportunities is the Baltic region.
Latvia still has many unused opportunities to invest in housing – Luminor bank has expressed its opinion at the conference “How will real estate market develop in Latvia?”.

Approximately 85% of homes in Latvia are not encumbered with credits, this means that opportunities to borrow for investments in housing are wide. Compare – for instance, in the Netherlands all homes have mortgage liabilities. In the Eurozone average proportion of mortgage loans to the gross domestic product is 40%, and in the Baltic States – just 16%. In turn, ability of the Baltic residents to purchase homes is assessed as good.

Housing market in Estonia and Lithuania is currently close to maturity, while in Latvia activity in the housing market is still quite slack. In turn, crediting cycle is relatively new and will only gain speed.
The whole Baltic Sea region currently sees rapid growth, and from the point of view economics this is a good time to invest in the Baltic region’s projects and gain from it guaranteed profit.

Find profitable investment projects in Baltics with Envestio

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Mogo now offers investment opportunities in its personal loans on Mintos p2p lending marketplace

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Opportunities for investment in Mogo loans has grown as the non-bank car loan provider now offers Latvia-issued unsecured personal loans for investment for the first time on Mintos. These loans are in addition to the car loans currently available from the loan originator from Bulgaria, Estonia, Latvia, Lithuania, Poland and Romania.

Mogo was established in 2012 in Latvia and is the largest non-bank car loan provider in the region. As of October 2017, Mogo also began issuing personal loans to residents of Latvia and as of February 28, 2018, has distributed EUR 1.8 million worth of loans to customers. Outside of Latvia, the company also has operations in Albania, Armenia, Bulgaria, Estonia, Georgia, Lithuania, Moldova, Poland and Romania. Mogo prides itself on its fast customer service and open communication, which fosters long-term relationships with its customers. As a result, it has more than 40 000 clients worldwide.

The average Latvia-issued personal loan on Mintos from Mogo is EUR 400. The average repayment term is 24 months and borrowers repay the loan in monthly instalments. You can expect an average annual net return of up to 14%.

To maintain its skin in the game, Mogo will keep 5% of each loan on its balance sheet. All Latvia-issued personal loans from the company are secured with a buyback guarantee meaning all loans that are delinquent for 60 days or more will be bought back.

Latvia is the company’s largest and most profitable market. As of December 31, 2017, Mogo Latvia’s net loan portfolio reached EUR 30.6 million, a 22% increase compared to December 31, 2016. In 2017, turnover for the company amounted to EUR 13.7 million. Since its inception, Mogo Latvia has originated more than 33 thousand loans worth EUR 86 million.

The typical borrower for Mogo is aged between 26 to 35 years. They are usually taking the loan to cover unexpected costs such as paying for repair work in the home. Feedback from customers has shown they appreciate the convenience and quick process of applying for a loan from Mogo.

As of December 31, 2017, Mogo Group’s net loan portfolio was more than EUR 100 million, a more than 50% increase compared to December 31, 2016. In 2017, turnover for the company amounted to EUR 40 million. Since its inception, Mogo Group has originated more than 91 thousand loans worth EUR 250 million.

Mogo joined the marketplace in 2015 and investors have invested more than EUR 105 million in its loans. In terms of total amount funded, Mogo is one of the top loan originators. The company currently offers car and personal loans in three currencies: Euro, British pound and Polish zloty.

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