Tukums DH is a Latvian power producing company that operates a cogeneration power plant located in Tukums region since 2012. This is an effective, environmental-friendly project that uses modern equipment and renewable energy source (woodchips) for production of thermal and electric power.
The plant consists of two independent stations, each producing both thermal and electric power. Technical characteristics of the stations are specified below:
Tukums DH is a successful venture due to its strategically beneficial location, effective equipment, and existing long-term contracts for consumption of electric and thermal energy, including an agreement with local municipality that is concluded until 2025. At the same time, the company has price-efficient supply of raw woodchips because of big number of local woodworking companies and relatively high competition on the market.
According to effective Latvian legislation in sphere of support of “small” (<10 MW) power producing plants, Tukums DH is receiving a subsidy from the Latvian Government (and will be receiving it until 2026 despite certain speculations around this topic, which traditionally become more tense during the pre-elections period in Latvia).
Tukums DH is looking to attract a total amount of EUR 1,050,000 for the time period of 10 months. The aim is completing the buyout of existing loan facility from Luminor bank that among the other modifications is reconsidering future cooperation with energy ventures in the Baltics following changes in the ownership structure and development strategy of the bank. The buyout is available to be accomplished at very attractive conditions allowing massive savings on future payments. Completing the buyout will allow Tukums DH attracting either a new long-term loan facility from another credit institution or strategic investment from one or several investment funds, operating in the region and interested in such type of projects.
Latvian electricity market is quite self-sustainable with local energy plants generating approximately 103% of total internal consumption (average figure for the year 2018).
The energy production is distributed among three main types of energy plants:
The demand for electricity is not projected to decrease in the nearest future.
Envestio participant’s investment - EUR 1 000.00
Total expected return: EUR 1 167.15Invest in this project
|Project start date||22.10.2019|
|Borrower||SIA “Tukums DH”, Reg. Nr. 40103280665, Latvia|
|Funding Target||€ 350 000|
|Loan Purpose||Financing of loan facility buyout from Luminor bank|
|Loan Period||10 months|
|Interest Rate||20% per annum|
|Repayment of Loan Principal||In full at the end of the Loan Period|
|Investment principal buyback available||Yes, 5% penalty rate|
|Payment of Interest Payments||Monthly, on a specific date|
|Financing type||Secured debt|
|Guarantee from the Project’s owner||Commercial pledge in favor of Envestio Collateral Agent, Personal guarantees|
Investment buyback is guaranteed!
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