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Green loan
Green Loan is a type of financing that enables farmers to use the proceeds for projects contributing to the environment. For investors, Green Loans give an opportunity to indirectly contribute to the generation of high-quality soil carbon credits, which are later sold on the Voluntary Carbon Market and receive part of the proceeds from their sale.
-3,679,908 kg CO2e
LT0001340
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 151.04 ha | 70.00 ha |
| 2022 | 2021 | |
|---|---|---|
| Revenue | 219,502.00 € | 171,329.00 € |
| Net profit | 64,356.00 € | 51,829.00 € |
| Equity ratio | 17.54% | - |
Documents
Payment schedule
Can capital help solve climate change?
What are carbon certificates?
About the farm
The businessman has been running a family farm in Lithuania where he works 151 hectares of arable land. The farm grows spring triticale and winter triticale among other grain crops.
The businessman already has a combine harvester John Deere 9640 WTS, a tractor John Deere 7920 among other pieces of heavy equipment.
The farmer owns 70 hectares of his own land and rents the rest.
The farmer already took two loans from HeavyFinance investor community, one of which (LT0000553) will be covered with the new loan. The remaining funds will be used to purchase a Claas Arion 630 tractor and to prepare for the upcoming season. In addition to the machinery and equipment purchased, the project owner is mortgaging 2 plots of land to secure the loan.
Main Terms
The principal will be repaid by the farmer in regular instalments over the span of 3 years in accordance with repayment schedule.
All 115 hectares of arable land are included in the Green Loan program. It is estimated that this farm will generate up to 2116 carbon certificates in 10 years (based on a conservative estimation). Consequently, investors will additionally receive a portion of sales proceeds from every carbon certificate generated throughout the span of 10 years.
It is expected that the first carbon certificates will be generated and sold in the first quarter of 2024. The exact return will depend on the amount of sequestered CO2 levels and the sale price of the carbon certificates.
If the farm withdraws from the Green Loan without a period of at least 10 years have elapsed, it undertakes to reimburse 12% annual interest.
CO2 emissions to be removed from the atmosphere because of this loan are equal to 8,7 million kilometres driven by an average gasoline-powered passenger vehicle.
Annualized return forecast
- Conservative scenario (€20 per carbon certificate): 15,1% IRR*
- Today's scenario (€35 per carbon certificate): 22,5% IRR*
- Optimistic scenario (€100 per carbon certificate): 45,7% IRR*
Read more about the return scenarios in the document section
*The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. Learn more about it
Keep in mind that the return forecast is an estimation and does not guarantee you the returns mentioned above.
Project risks
Please note that investing in this project carries inherent risks, including the potential for the loss of profits and invested funds.
In the event that the Project Owner fails to fulfil their obligations, InSoil will take all necessary measures to safeguard the interests of investors and utilise the provided collateral. However, the Platform Operator does not guarantee the complete fulfilment of the Project Owner’s obligations.
There is also the possibility that carbon certificates may not be generated due to various reasons, such as the actions of Heavy Finance UAB, the project owner, or external factors.
Due to changes in market conditions, measurement methodologies and other factors, the price of carbon certificates is subject to change.