Agricultural loan "Vidzemnieki”, Praulienas parish, Madonas region

Beschreibung

This project provides LendSecured investors with an opportunity to finance an agricultural loan secured by a first rank mortgage on the real estate “Vidzemnieki”, located in Praulienas parish, Madonas region for a farm owner. The funding target for this project is € 6 174.91, which will be to refinance an existing business loan and obtain additional capital for the repair of the roof a farm building.

This project gives an opportunity to make a loan with an annual rate of 11%, LTV of 19%, loan term of 24 months, with monthly manner of interest and principal payments.

The collateral consists of 3 land plots with a total area of 17.09 ha, consisting both of agricultural and forest land. In order to secure the claims, arising out of loan agreements, a first-hand mortgage in the amount of € 12 349.82 will be registered on the collateral in the Land Register of Latvia.

The current market value of the collateral is estimated at € 32 800.00 subsequently making loan to collateral value ratio (LTV) - 19%.

The demand for agricultural land currently in Latvia exceeds supply and 25% of farmers are forced to rent the land, as there is none available on the market. The price of agricultural land plots in the parish of the collateral ranges from € 1 750 EUR per ha to € 2 600 per ha. The average price of forest land keep increasing, on average being € 2 140 per ha.

Borrower is an owner of a farm focused on animal husbandry, forestry and trade of agricultural products.

Borrower is seeking funds to refinance an existing business loan and obtain additional capital for the repair of the roof a farm building. Borrower aims to repay the loan from incoming business revenues. Borrower’s farm is a recipient of support payments from European Agricultural Guarantee Fund and European Agricultural Fund for Rural Development.

Sicherheit

• Land Latvia, LV
• Sicherheitstyp Land
• Wert der Sicherheit €32,800.00
• Beleihungsquote 19%