The Company is a grain farm that operates in the Latgale region of Latvia. The Company has been operating since 2012, it is a bio grain producer and has received numerous awards. The Company cultivates 2,300 ha of land, of which 300 ha is owned by the Company while the rest is leased. 

The Company requires working capital financing for the current farming season, to purchase minerals, fuel, pay salaries and other working capital related expenses, and to cover payments for the rental of land. 

Therefore, the Company is seeking EUR 153,648 financing for 9 months. The loan will carry a 10.44% annual interest rate (0.87% monthly) and it will be amortized at the end of the loan term. The loan will be secured with a mortgage on a 57.5ha agricultural land property with an estimated market value of EUR 234,800. In addition, the owner of the Company will provide a personal guarantee for the loan. The project risk rate is B (85 out of 100).

Altogether Capitalia has accepted financing for the Company in the amount of EUR 205,187. The second tranche will be in the amount of EUR 51,539.  For  the  second tranche  only  a  guarantee  from the owner will be provided.

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

• The Company is an existing client of Capitalia with an excellent payment discipline and has already repaid more than EUR 206,00 of loan principal.
• The loan will be secured with a mortgage on a 57.5ha agricultural land property with an estimated market value of EUR 234,800.
• The owner of the Company will provide a personal guarantee for the loan.
• The Company has a proven track record of profitability.