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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.
-1,353,564 kg CO2e
LT0002013
Goal
20,000 €
Raised
20,000 €
Return rate 
28%
Rating
B+
Period
42
Time left
LTV
85%
Country
Lithuania
Loan purpose
Working capital
Business information
Security measures
Loan history
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 84.18 ha | 32.00 ha |
| 2022 | 2021 | |
|---|---|---|
| Revenue | 94,873.00 € | 121,535.00 € |
| Net profit | 51,121.00 € | 28,645.00 € |
| Equity ratio | 73.29% | - |
Project description
Documents
Payment schedule
About the farm
We invite you to invest in a farmer who is committed not only to high quality production but also to sustainable agriculture. We invite you to invest in a farmer who is committed not only to high quality production but also to sustainable agriculture.
The farmer, who has been farming since 2003, successfully operates on 84 ha of land, of which 32 ha are owned. The farm grows winter wheat, winter rape, spring malting barley, peas and beans. The farmer uses the method of no-till farming on his farm and plans to expand his farm in the future by increasing the size of the farmland.
The farm's machinery fleet consists of three modern tractors, an efficient combine harvester, a seeder, a cultivator, a sprayer, a dryer and all the other necessary equipment to ensure a smooth and efficient workflow.
The farm is currently borrowing to increase its working capital. Join us to help further develop this promising farm while ensuring its growth and development.
Main Terms
The principal will be repaid by the farmer in regular instalments over the span of 4 years in accordance with the repayment schedule.
42,30 hectares of land are included in the Green Loan program. It is estimated that a total of 390 carbon certificates will be generated in 5 years (based on a conservative estimation). Consequently, investors will receive a portion of sales proceeds from every carbon certificate generated throughout the span of 5 years as the following terms;
- 60% of income share during the loan period
- 40% of income share for the following year after the loan period
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 5 years has elapsed, it undertakes to reimburse 12% annual interest.
CO2 emissions to be removed from the atmosphere because of this loan are equal to 997 thousand kilometres driven by an average gasoline-powered passenger vehicle.
Annualized return forecast
- Conservative scenario (€20 per carbon certificate): 16,3% IRR*
- Today's scenario (€35 per carbon certificate): 28% IRR*
- Optimistic scenario (€100 per carbon certificate): 77% 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.