The INVL Sustainable Timberland and Farmland Fund II (STAFF II), which invests in forests and agricultural land in Central and Eastern Europe, has obtained a EUR 8.2 million 5-year loan to expand its activities. The loan agreement was signed by Luminor Bank AS and companies which the STAFF II fund owns indirectly.
“We value partnership with Luminor, a leading bank in the Baltic region with a deep grasp of the agriculture sector. We have begun the fund’s operations with acquisitions of top-quality agricultural land and forests and will use the proceeds of the loan which has been granted for further investments by the fund. We will actively continue activities in the Baltic countries and expand the portfolio in Eastern EU countries, as envisaged in the fund’s strategy,” STAFF II Partner Martynas Samulionis said.
Samulionis stressed that, in its activities, the fund applies time-honoured standards of sustainable forestry and agriculture, also pointing out that the duration of the STAFF II fund is unlimited, which will allow it to hold acquired assets for a very long time and manage the investments entrusted to it effectively.
“A specialized fund whose strategy clearly sets out requirements of sustainability shows the maturity and professionalism of Lithuania’s entire private equity market. The areas chosen by the fund demand specific expertise but are promising and attractive for investments, while the relatively broad investment geography makes it possible to address the limitations of individual markets. I’m sure the fund’s growth will be rapid, so it will certainly be interesting to follow,” Jonas Urbonas, Head of Corporate Banking at Luminor, noted.
About the INVL Sustainable Timberland and Farmland Fund II (STAFF II)
The fund was established in the second half of 2020 and is administered by Apex Group, one of Europe’s largest providers of fund services. The fund invests in sustainably managed forests and agricultural land in the Baltic Sea region and Central and Eastern Europe. It is intended for institutional and private investors from EU countries. The fund operates under the laws of the Grand Duchy of Luxembourg and invests in individual countries in keeping with the regulatory limits set by those countries.
About Luminor
Luminor is the third-largest financial service provider on the Baltic banking market. As of 31 December 2020, it had a 16.1% share of deposits in the region and a 17.2% share of the loan market. Luminor’s more than 2,300 employees serves 900,000 customers. It has a tier 1 capital adequacy ratio (CET1) of 22.4% and share capital of EUR 1.7 billion.
