The Company was established in 2014 and it produces granite, quartz, and ceramic countertops in Estonia. Around 80% of all the goods produced by the Company are exported to such countries as Norway, Sweden, Denmark, Finland, Germany, the UK, the USA, and others. The Company's clientele is well-diversified and includes both business and private clients in different geographies. Although the Company has taken over the current business operations in 2021, the acquired business has been operating in the industry since 1999.

The Company is growing and experiencing significant demand. Currently, the main challenge is to maintain sufficient stock to further increase the sales volumes. The Company has agreed on bulk material purchases from suppliers in China and India. On that basis, the Company will have a better price for raw materials and will be able to improve its profit margin, however, a full pre-payment to suppliers has to be made as well as delivery takes up to 2 months.

Therefore, the Company is seeking additional working capital of EUR 204,000 for 18 months to settle with suppliers and purchase additional raw materials. The loan will carry a 12.72% annual interest rate (1.06% monthly) with monthly interest payments and the principal repayment at the end of the loan term. The loan will be secured as a 1st rank mortgage on a real estate property consisting of 5 land units and a building with a market value of EUR 730,000. The loan repayment is planned from the sale of the pledged property or refinancing to a commercial bank. The loan will be issued to a separate company that owns the collateral real estate and the Company will provide its guarantee for the loan and service the monthly payments as the guarantor for the liabilities. The project risk rate is B (89 out of 100).

By this financing project, the total issued financing amount will be EUR 408,000 (LTV 56%). The collateral for all of the tranches will be the same (shared mortgage for all the financing agreements). In total, Capitalia has approved financing with an LTV of up to 60% and the LTV may be increased to 70% once the building is completed and commissioned.

There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:

• The loan will be secured with a 1st rank mortgage on a real estate property consisting of 5 land units and buildings with a market value of EUR 730,000 (LTV 56% including the previous financing tranche).
• The Company is an existing client of Capitalia with an excellent payment discipline.
• The Company has a well-diversified clientele in different geographies.
• The business has been operating in the industry for more than 20 years.
• The Company’s owner has a strong background and experience of more than 20 years managing equity investments (previously a partner at Askembla private equity fund), financial advisory as well as managing his own business projects.