Strengthening its position in the Baltic market, the sustainable forestry fund “Baltic Green Fund” managed by I Asset Management has received a loan of 18 million euros from the bank “Citadel“, which was used to expand its forest portfolio in the territory of Latvia, informs the bank ‘s representatives.
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The Baltic Green Fund has been working in the forestry sector since 2019 and has been able to attract the trust of institutional investors by engaging in sustainable forest cultivation and planting. Thanks to the attracted funding from Citadele, the amount of assets under management will increase to 15,000 hectares of forestry in the Baltic States, of which more than 13,000 hectares are grown in Latvia.
The fund’s primary objective is to strengthen its portfolio of forests with high biological growth potential that meet the FCS’s international standards for sustainable forestry, which means that forest owners must comply with specific regulations regarding commercial restrictions, logging volumes and other parameters.
“We are pleased that this transaction will allow the Baltic Green Fund to expand its forest portfolio in the Baltics to more than 15,000 hectares. We continue to pursue a sustainable forestry strategy, developing forests in our areas and striving to maximize the potential for biological growth,” says Baltic Green. Fund “Manager Dzintars Salavs. “This transaction will allow the fund we manage not only to be an active player in the forest acquisition market, but also to strengthen our position as one of the leaders in sustainable forestry in the Baltics. We do not plan to stop here funds in the region. “
“Since the establishment of the fund, we have been convinced that the implementation of sustainable management principles in forestry will help to cooperate with powerful partners – we have not only attracted institutional investors in the form of Baltic pension funds, but also one of the leading banks – Citadele. With a reliable financial partner, we can realize our goals and plan our long-term future, “says Simonas Jurgionis, Member of the Board of I Asset Management and Investment Director of Baltic Green Fund.
“Forestry has traditionally been one of the strongest industrial sectors in the Baltics. The forestry sector is developing at a rapid pace, providing ever new high value-added services. Citadele was the first financing partner of the Baltic Green Fund in 2020, and we are pleased to continue our cooperation this year as well. Active forest management is carried out in accordance with the highest standards of sustainability and the forestry industry. The forests managed by the Baltic Green Fund are in strict compliance with all FSC requirements, and the forest biomass will be increased by more than 50% in ten years, leaving a positive CO2 footprint, “said Vaidas Žagūnis, Citadele’s Head of Corporate Banking in the Baltics.
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