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Thanks to Green Loans, a new Heavy Finance investment product, the answer is yes!

Green Loans allow you to provide financing for environmental solutions making a real positive change to our climate while making a great return on your investment. At HeavyFinance, we open the door for retail and institutional investors to the growing market of carbon certificates, offering an opportunity for a significant return with a significant impact. We encourage you to learn more about the potential of the carbon certificate market on our blog.

A carbon certificate is a unit of exchange that companies and organisations can use to offset their greenhouse gas emissions. One carbon certificate is equivalent to one metric ton of greenhouse gases removed from the atmosphere, and farmers engaged in no-till practice on average remove 2.3 tonnes of carbon dioxide per hectare from the atmosphere every year.

As the current market price of a single carbon certificate is within the range of 25 - 35 EUR, only one hectare of agricultural land with adopted no-till practice can generate 58 - 81 EUR per year.

As more and more companies are targeting zero net emissions goals, the demand and therefore the price of carbon certificates is expected to increase over time. Moreover, as all HeavyFinance sustainability projects are verifiable and accurately track their actual carbon dioxide sequestration, the quality of our carbon certificates can be sold at a market premium, further increasing the return on investment. Read more on carbon certificate pricing in our blog and learn why HeavyFinance provides you with the best exposure to the carbon market.

The borrower has been engaged in the agricultural sector for over ten years and now manages 91.57 ha of agricultural land in the Raseiniai district, from which 30 ha is owned by himself. Crop production is developed on the farmland - there is cultivated wheat, barley, and rapeseed.

All of the cultivated land of the farmer himself will be enrolled in to Green loan programme together with additional area which is cultivated by his wife. The total enrolled area is 114.83 ha.

Currently, the farm’s technical fleet consists of several tractors, combines, trailers, and other heavy-duty machinery. With finance from his previous loan on the HeavyFinance platform, the farmer has acquired a telescopic tractor. He had met all financial obligations on time with zero delay days on this previous loan.

With the funds from this loan, he is aiming to increase the working capital of the farm. To secure the loan, the pledge on two land plots (total of 5.63 ha) and a tractor will be registered.

The principal will be repaid by the farmer in regular instalments over the span of 3 years in accordance with the repayment schedule.

114.83 hectares of arable land are included in the Green Loan program. It is estimated that a total of 845 carbon certificates will be generated in 4 years (based on a conservative estimation). Consequently, investors will receive a portion of sales proceeds from every carbon certificate generated throughout the span of 4 years as the following terms;

It is expected that the first carbon certificates will be generated and sold in the fourth 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 4 years has elapsed, it undertakes to reimburse 11% annual interest.

CO2 emissions to be removed from the atmosphere because of this loan are equal to 2,2 million kilometres driven by an average gasoline-powered passenger vehicle.

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.