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MORTGAGE BACKED FINANCING COMPANY
100% Funded

100%
100%
Need:0.00€
Min.:0.00€
Interest rate:18%
Period:24 months
Target: 500 000€
Min. target: 400 000€
Opens: 2019/11/25
Expires: 2019/12/25
Type: Specialized
Location: Latvia
Investments: 1747

SUMMARY

The current investment opportunity offers CROWDESTOR investors to make a secured loan to Juno, which is Forestry financing company.

Juno provides financing for forest owners for forest management jobs, purchase of machinery, implementation of EU fund projects, financing for loggers, as well as other types of forestry investment projects.

Funds will be used to significantly expand business operations and step in Estonian and Lithuanian markets.

Juno's team of experienced professionals from the forest and finance industries have created a service that allows forest industry companies to get funding within 48 hours. In contrast to banks which needs weeks, Juno is able to quickly and precisely assess forest assets and stock values, in 9 out of 10 cases it is within 24 hours.

All issued financing is insured with collateral around at LTV 60%.

Juno sees potential to generate an open loan portfolio of up to 5 million EUR, with 3-6 month loan period, providing investors with a high return on investment. Potential financing market size – EUR 40 000 000,00, ROC for open portfolio reaches up to 39% yearly.

Current investment opportunity offers CROWDESTOR investors to earn 18% annual interest rate.

 

LOAN

Max. target: EUR 500 000,00

Min. target: EUR  400 000,00

Loan term: 24 months

Interest rate: 18% per annum

Interest payments: paid quarterly, first payment after 6 months

Loan repayment: In full at the end of the Loan Term

BuyBack fund: Yes

Security:

  • The loan is secured with a land property mortgages, with LTV less than 60%
  • To ensure transparent investment management, 40% of the shares will be registered to Crowdestor security

 

Remember - interest rate payments start calculating from the day you make your investment!

 

ABOUT JUNO

Joint-stock company Juno is a team of professionals with over 10-year experience in forestry and financial sectors. Our know-how enables us to quickly and precisely evaluate forest properties and timber stocks at competitive offerings.

Juno works in two business areas: non-banking financing for small and medium business in the forestry sector and acquisition of forest and other land properties. We are one of the few companies in Latvia specializing in financing companies and entrepreneurs working in forestry and timber trade sectors. Loans are mainly disbursed as advance payments for timber deliveries secured by land mortgages. We estimate the total market potential of 40 million euros outstanding loan portfolio (gross loan portfolio). Our risk-taking policy is conservative, granting no principal losses.

Acquisition of forest properties has evolved as a by-product of financing, as there are instances when financing clients want to quickly sell their properties in order to raise additional working capital. We pool these properties in larger estate baskets and resell them to major forest portfolio owners in Latvia, such as Ikea (Inka Group), Sodra and SCA, at a higher price than individual properties.

Due to the lack of competence and incentive of Latvian banks to assess the value of forest assets – growing stock (harvestable stock and standing stock), forest sector companies do not have access to sufficient working capital for the immediate purchase of cutting rights and forest properties. Juno's team of experienced professionals from the forest, finance and IT industries have created a service that allows forest industry companies to acquire funding within 48 hours. In contrast to banks, Juno is able to quickly and precisely assess forest assets and stock values, in 9 out of 10 cases it is within 24 hours.

All issued financing is insured with collateral with LTV around 60%. The collateral includes forest or agricultural land as well as elaborated timber, which borrower is obliged to sell through Juno.

We see that potential is to generate an open loan portfolio of up to 5 million EUR, with 3-6 month loan period. You can find more information about the company www.juno.lv .

 

MARKET

The total market for the forest sector is about EUR 4 billion. Our service is of interest to companies in the industry that are primarily engaged in logging and forestry, which represents about 10% or 400,000,000 of the entire industry. From this segment, the Juno service is suitable for small and medium-sized businesses with an annual turnover of between EUR 500,000 and EUR 5,000,000, which is approximately 10% or EUR 40,000,000. This is the amount that could be maximally achieved within a year including recurring loans.

On average, companies borrow up to EUR 50,000 for a period of 3 to 6 months. Our goal is to reach a portfolio of 5,000,000 and reissue it 3 times within a year, totaling 15 M €.

Close and integrated cooperation with market leading timber trading companies, where JUNO acts as a sole non-banking lender offered to their clients.

 

INDUSTRY IN FIGURES

 

 

 

 

LATVIAN FOREST LANDSCAPE

At present, the forest sector is one of the major economies of the country cornerstones. Forestry, woodworking and furniture manufacturing the share of GDP in 2017 was 4.8%, while exports amounted to € 2.2 billion, 20% of the country's total export. Currently there are no pagasts in Latvia where one could not be found a smaller or larger wood processing company. Often they are the most important employers in the area and hence the local economies and one of the main pillar of the population.

Latvian forests cover 3.383 million hectares and cover 52% of the country's territory. In addition, forest areas continue to increase. The expansion of forests occurs both naturally and through the afforestation of barren and non-agricultural land. However, another indicator is more important - three times faster than the area of forests, the amount of wood stored in the forest or the volume of wood is growing every year. This is evident confirmation that Latvia's woodland does not increase on the bush at the expense of not counting forest areas, but on the contrary, purposeful forestry activities are carried out in the country. During the decade, approximately 11 million trees are harvested annually in Latvian forests m3 of wood. It is less than natural growth, so Latvian forestry can be described as sustainable.

 

 

Source: https://www.zm.gov.lv/public/ck/files/skaitlifakti_LV_19.pdf

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