COBALT advises Baltic Green Fund in the expansion of its sustainable forest portfolio

Baltic Green Fund, a sustainable forestry investment fund managed by the investment management company I Asset Management, has completed one of the largest transactions in the Baltic States in the recent years, acquiring more than 7,000 hectares of forest in Latvia’s Rezekne region owned by Isnaudas Forest Holding AB through its Latvian subsidiaries.

Citadele Bank was the financial partner in the transaction, providing Baltic Green Fund with a loan of EUR 18 million for the acquisition of the forest in Latvia.

COBALT acted as a lead counsel in the transaction, providing full legal support to the Baltic Green Fund, including the legal due diligence of the target, drafting of transaction documentation and assisting on the closing of the deal. COBALT team included Managing Partner Dace Silava-Tomsone, and Senior Associates Marija Berdova and Juta Meimere. Swedish law advice and assistance in the transaction was provided by Delphi.

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. 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. Under the standards forest owners must comply with specific regulations regarding commercial restrictions, logging volumes and other parameters.