“SEB banka” granted a loan of EUR 4.4 million to SIA “SG Capital Meža Fonds” for the purchase and management of 1,942 hectares of forest property, “Delfi Bizness” informed the bank.
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The forest properties in question have been awarded a Forest Stewardship Council (FSC) certificate, certifying responsible forest management, which has enabled the loan to apply Green Credit status.
“SG Capital Forest Fund” was established in 2022 and one of the main goals of the fund is to promote the development of sustainable forestry in Latvia. The fund’s investors are leading pension plan managers in Latvia and Lithuania. The 2nd and 3rd level pension savings manager “SEB Investment Management” has so far invested around 10 million euros in the fund.
In general, more than 30 million euros from SEB’s managed pension assets are expected to be invested in the fund, thus giving SEB pension level 2 and 3 clients the opportunity to invest not only sustainably, but also in the local economy.
“SEB banka” board member Ints Krasts emphasizes that with the help of “SG Capital Meža Fonds” the capital accumulated in Latvian pension funds is invested in the greenest and most sustainable form of investment – in forest lands, while also supporting the forestry industry, which is so important to Latvia and its regions, and providing it with long-term capital.
“The fund’s return on investment last year exceeded 10%, which is a good performance at a time when global stock and bond prices fell, and most investments showed negative returns. Last year was a great demonstration that forest investments can provide good returns, they can protect investments from inflation and at the same time promote sustainable forest management. In the coming years, the Fund plans to afforest significant land areas, thus making a direct contribution to a greener and healthier environment in Latvia,” emphasizes Harijs Švarcs, partner and board member of “SG Capital Forest Fund”.
The manager of “SG Capital Meža Fund” (“SG Capital Partners Sustainable Forest and Land Fund I”, KS) is Latvia’s largest licensed real estate alternative investment fund manager, SIA “SG Capital Partners AIFP” – a real estate investment manager that focuses on investment sustainability . The company currently manages SG Capital Partners Fund I and Sustainable Forest and Land Fund.
