Descripton

Introduction

This project provides the investor's community with an opportunity to invest in a loan, secured by a first-rank mortgage on 39,2 ha of arable land in Lithuania. 

The project owner Osvaldas Gritėnas started farming in 2007 and has been expanding the farming territory since then. Now the farm declares 248 ha of arable land, has two tractors, a combine harvester among other equipment needed for farming. 

Part of this land is being used to raise sheep. It is a quite uncommon farming activity in Lithuania, however, an increasing number of farmers start raising domestic sheep due to higher prices of lamb in international markets. Furthermore, another part of the land is dedicated to ecological farming. Osvaldas, therefore, receive more money in subsidies because ecological farming is one of the EU supported priorities. 

The funding target for Osvaldas project is €83.000. He is willing to use this money for both debt refinancing and to prepare for the new season. 

Collateral

• 39,2 ha of arable land. (first-hand mortgage)
• Value of mortgaged property: €130.600
• Loan to current asset value ratio: 64%

The risk class for this loan provided by the originator is A.

Interest rate 12%

Detailed Information

Financial situation

Gross production

• 2020-11 €98.000
• 2019 m. €183.000 

EBIDTA

• 2020-11 €47.000
• 2019 m. €54.000 

Equity ratio

• 2020-11 24,2%
• 2019 m. 28,4% 

Estimated subsidies for 2020

• €49.000

yield held in stock

• Rye, 35t (around €4.000)
• Oat, 10t (around €2.000)
• Beans, 35t (around €10.500)
• Bare Oat, 57t (around €35.000)

The project owner will repay the principal according to the schedule below:

• 2021-11 (€19 174)
• 2022-11 (€19 366)
• 2023-11 (€44 460)

Interest will be paid monthly.

Project owner

• Osvaldas Gritėnas
• Kuzmiškių k., Debeikių sen., Anykščių r.

Project risks

Project risks:

• There is a risk of losing all the profits made and the funds invested.
• In this case, if the Project Owner fails to fulfill its obligations, the Platform Operator will take all necessary measures to protect the interests of investors and use the provided collateral, but the Platform Operator does not guarantee the full fulfillment of the Project Owner's obligations.
• Financial agreements are not subject to the insurance protection established by the Law on Insurance of Deposits and Liabilities to Investors of the Republic of Lithuania.

Additional information:

If the project owner does not collect the amounts to be financed, the collected funds will be returned to the funders by transferring them to the account from which they were transferred. The Platform Operator also has the right to offer the Project Owner to reduce the amount to be financed during the Project financing term or to extend the Project financing term. In this case, if the amount to be financed is reduced or the term of financing the Project is extended, it shall in all cases be announced on the Platform and the Fund's financiers shall be informed.