On January 14th, 2010 the shareholders of Land and Business S.A (the "Issuer"), a company organized under the laws of Luxembourg, approved the issue by the Issuer of up to Euro 10.000.000 Profit Participating Loan Notes or such greater amount as may be agreed between the Issuer and the Noteholders.
Final Maturity Date is the 31/12/2016, nevertheless the Issuer may decide to postpone the final maturity.
The notes are specifically in connection with to the "Energy Asset Recovery (EAR) Compartment" and the performance will follow the quotation of this compartment. The first twelve months bid price is fixed (100).
The Energy Asset Recover ("EAR") Note offers investors access to a combined investment strategy in two of the most interesting and largest markets in the world: renewable energy and properties. The weighed mix of the two sectors jointly with the new and clever strategy will bring a regular daily high income based on the sale of alternative energies with local governments contributions and, a sort of terminal bonus in the medium-long term based on the cost-effective way to invest in property developments starting from phase 1.
Energy is one of the largest industries in the world. Based on recent performance percentages, investing in renewable energy could be a smart choice for investors.
The current uncertainty about the earth's future energy supply makes investing in renewable energy an attractive option, especially for long term investors. Fossil fuels are not renewable forms of energy, eventually they are going to run out. According to the BP Statistical Review of World Energy there is only enough oil left on earth to last for approximately 42 years at the world's current rate of consumption.
The New Energy World Network recently commissioned research, which found that about 90 percent of private equity, venture capital funds, insurance, and pension funds want to have a certain amount of exposure to clean technology, renewable energy, and investments related to sustainability. Over two thirds stated that they have either made green investments or will do so within the following three years.
The commissioned research also discovered that the principal motive for general green investments is the potential of high returns. It wasn't the only motive, however, with 64 percent citing environmental responsibility and 59 percent - social responsibility, provided the financial returns were met.
It is no surprise that green investments are becoming more and more popular. The key to investing is timing, and there is no time like the present to be investing in our planet's future. Because of the endless benefits green investments offer in terms of environmentally sound practices and technologies, investing in them is the ethical thing to do from an investor's point of view.
Green investments are an inspiring and motivating choice for investors.
At the same time, we have seen in the last years the dramatically fall of some property markets. Nevertheless most people who have bought their own home will realize that property, in a medium - long term period, can be a good investment - house prices rose significantly in past years, although this growth has stalled recently.
Now all we must be more selective in property market and look for where real need of houses appear. The EAR Compartment is invested in Vilnius city market for two very important reasons:
- First the Baltic countries have all committed to the EU energy goals of 20-20-20 by 2020 (goals which commit EU countries to reduce their energy consumption and emissions of greenhouse gases by 20% and ensure that 20% of energy consumption is covered by renewable energy by 2020). 20% is the European average, but individual goals have been set for each country in order to reach this total average of 20%. By 2020, the percentages of renewable energy in final energy consumption for Lithuania should be 23% (currently 15%).
In Lithuania, total electricity generation reached 15.36 billion kWh last year (an increase by 11% from the precious year). Around 71% of the total energy was generated by the Ignalina Nuclear Power Plant. However, Lithuania is forced to search for new sources of electricity as the Ignalina Nuclear Power Plant of which Lithuania (and to some extent also Latvia and Estonia) is dependent, shut down the last reactor at the end of the year. The natural gas price is dramatically rising.
The renovation of houses built in the Soviet time is one of the most important programs within energy saving/efficiency in Lithuania. The program runs until 2020 and calls for the renovation of around 26,000 or 70% of all dwelling houses built before 1993. Reconstruction in the reaches of 2.3 billion EUR is needed. The Lithuanian government has welcomed the Jessica funding program created by the EU (some 227 million EUR) and established a system wherein successful applicants can get up to 15% of their expenses covered by the state. In other words to follow to live into old houses in big condominiums you have to pay 85% of the expensive and, consequently, the value of them must rise. We know a lot of people want to change their house in that moment.
- Second, but not the least, the demographic situation in Vilnius is favourable in short term (3-10 years) perspective. Young people born in higher birth-rate years are entering employee market and after this demand for apartments will increase. In 2010, the total stock of unsold new units should therefore decline, for the first time since 2007.
The short geographical and cultural distance between Scandinavian countries and the Baltic countries merged to the average level of education of the population can graft a very important positive stimulus to the project environmentally friendly design of the environment and some concepts (e.g. passive houses).
The EAR department has been established with the primary objective of maximizing capital return in real terms for Investors, whilst seeking to preserve capital. Target investment return is more than 12% yearly: it is important to note that these returns will be at least partly from the sale of alternative energies with local governments contributions and from the profits of development and are not therefore reliant simply on upward market movement. Any changes in the real estate market will impact on investments, however with the implied profit from development there is an hedge from negative price movement - whilst clearly any upward revaluation will dramatically enhance returns.