Investment opportunity in agro commodity and fertilizer industry
We are offering CROWDESTOR investors to issue a loan in a total amount of 850 000 EUR to cover Cotton Fertilizer product purchase cost, loading at export port and vessel freight from EU, Latvia to a state owned Cotton Factory in Cameroon.
The Investment to be returned with interest in 3 months period. This contract period is from mid January 2020 to mid April 2020.
The product volume is 15 500 metric tones of complex NPKSB 19-12-19-5-1 fertilizer, that is shipped in on large lot in a single chartered vessel by Borrower.
The total contract value is 4’572’500.00 EUR and total costs are 4’122’000.00 EUR. In CROWDESTOR platform it is going to be raised funds in a range of 1'200'00 EUR to 1'900'000.00 depending on interest of investors. The balance that is not raised by CROWDESTOR investors is covered by Borrower mother-company.
Financing will be used to cover product purchase, contract production and bagging services, loading, shipping and Banking charges of Letter of Credit drawdown, and inspection and quality control services.
The Loan and interest will be repaid from Guaranteed income that is secured by Letter of Credit issued by bank registered in Paris. The income from export is received when product loaded on-board vessel and export documents handed over to the bank for Letter of Credit drawdown. The risk of Borrower and CROWDESTOR Investors ends when product loaded at the export port and vessel freight paid before cargo leave to end Client – from Port Liepaja, Latvia or Riga, Latvia.
For both, CROWDESTOR and NPK EXPERT INTERNATIONAL security, the Back-bone of this export deal is Letter of Credit confirmed by French bank. Without receiving such payment instrument as guarantee Borrower will not purchase any goods and release cargo for export. The contract is covered by L/C in 100% amount of 4’572’500.00 EUR.
The Borrower is NPK Expert INTERNATIONAL, (London, UK) belongs to Fertilizer Group JSC main shareholder Mr. Girts Celajs a businessman and angel investor that has an outstanding track record in international export business and fertilizer production. Together with his team since 2009 they have exported to 29 various countries and put their brand awareness in 4 continents. One of their created fertilizer brands “NPK EXPERT” has received the best exporting brand award by The Red Jackets, in Riga, Latvia in 2015. https://www.theredjackets.lv
Current investment opportunity offers CROWDESTOR investors to make a loan with 21% annual interest rate with Loan term of 3 months. Interests and Loan principal is paid after Loan term.
Minimum target to be raised in CROWDESTOR platform is EUR 500 000,00 and the maximum target is EUR 850 000,00.
Minimum target: EUR 500'000
Maximum target: EUR 850'000
Loan term: 3 months
Interest rate: 21 %
Interest payments: At the end of the loan period
Loan repayment: In full at the end of the Loan Term
Crowdestor BuyBack fund: Yes
1) Crowdestor is holding collateral title on the goods purchased by funds from Crowdestor investors till the cargo is loaded on board vessel and exported.
2) 100% of Crowdestor investors funds and interest is secured by Assignation from the Proceeds of the incoming Letter of Credit draw down funds. The bank will pay out automatically the assigned amount to cover the principal and interests of Crowdestor loan without hitting Borrowers account. This assignation is irrevocable.
Please, see the chart below for cycle of a fund invested and security monitoring in all the period till income from Letter of Credit draw-down
Fertilizer Group JSC main trading brand NPK Expert® (since 2014 registered in OHIM - The European Union Intellectual Property Office) is well-established player with strong market position and one of the fertilizer supply market leaders in West African cotton states. Already since 2012 foundation of a first group company, now has offices and agents globally in Central America, South America, Europe, Africa and Asia. Fertilizer Group-owned companies located in Latvia has a highly scalable business model due to geographical location next to the shipping port in Liepāja with only 2.5 km distance to 12.5m deep loading berth. Built-in cargo rails linking warehouses with raw material suppliers from Russia, Belarus Uzbekistan, Kazakhstan and Baltics, providing an advantage in terms of logistics efﬁciency. Groups’ new fertilizer plant has been launched in 2019. During the last years, group companies traded almost 150k tons of products and several large contracts with global agriculture players signed recently for 2020. Company has well-recognized products and offers a strong product portfolio with more than +250 different fertilizer formulas for agriculture needs developed and used around the globe. Impressive fertilizer and related product assortment: from mono fertilizers and standard bulk blends to the most complicated compound grades and packaging options ranging from 1kg to 1,000kg are suitable for a wide clientele. Engages as well in private label production for large size clients. Fertilizer Group JSC is led by an experienced management team with specific industry know-how for decades and patented innovations.
Brand is represented in Scandinavia, Dominican Republic, Brasil, Cameroon and Ghana.
NPK Expert receives the Red Jackets award as outstanding export brand.
Infrastructure in Liepaja (ice free port):
Products and services
US Patent Pending since 2016 as new fertilizer product and technology.
brand name more than 240 fertilizer grades under
Green Care line
3 different organic fertilizer products
developed for palm oil trees and pineapple farming
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