Funding for ZS Brūveri

Loan

• Amount € 12090.00
• Interest rate 10%
• Term 19m
• Collateral type Land
• LTV 59%

Description

This project provides LANDE investors with an opportunity to finance an agricultural loan in the amount of € 12 090, secured by a first-rank mortgage on real estate, located in "Krūmiņi", Mazzalves pag., Aizkraukles nov., Latvia, cadastre number 3266 010 0102.

The borrower is engaged in cattle farming for 19 years, manages 33.95 ha of land and will use the loan for working capital.

The annual interest rate of 10%, LTV of 59%, and the loan term of 19 months, with monthly manner of interest payments.

The collateral consists of a land plot with a total area of 5.8 ha of agricultural land and 0.9 ha of forest land. In order to secure the claims, arising out of loan agreements a first-hand mortgage will be registered on the collateral in the Land Register of Latvia. Aside from the mortgage, the collateral is debt free. 

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 € 3 400 to € 3 600 per ha and the price of forest land plots in the parish of the collateral ranges from € 2 100 to € 2 200 per ha.

The current market value of the collateral is estimated to be € 20 381 subsequently making the loan-to-collateral value ratio (LTV) - 59%.

The borrower aims to repay the loan from incoming business revenue.

The borrower is a recipient of support payments from the European Agricultural Guarantee Fund and the European Agricultural Fund for Rural Development.