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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.
-5,279,868 kg CO2e
LT0002036
Goal
78,000 €
Raised
78,000 €
Return rate 
30.5%
Rating
A
Period
30
Time left
LTV
83%
Country
Lithuania
Loan purpose
Working capital
Business information
Security measures
Loan history
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 604.94 ha | 260.00 ha |
| 2022 | 2021 | |
|---|---|---|
| Revenue | 496,554.00 € | 456,983.00 € |
| Net profit | 207,239.00 € | 162,484.00 € |
| Equity ratio | 52.49% | - |
Project description
Documents
Payment schedule
About the farm
Since 2000, in Biržai District a cereal farm was established growing wheat, rapeseed and other crops. The farmer's holdings comprise 604.94 hectares of arable land, of which 260 ha belong to the farmer. However, the total family holding is about 800 ha.
The farmer's machinery fleet consists of two combine harvesters, several tractors, a sowing machine, a sprayer, a trailer and other cultivation equipment. The farmer cultivates the land using no-till farming machinery.
The farmer has applied for a green loan from the HeavyFinance investor community for the purchase of machinery. He pledges the land he owns as collateral for the loan.
Main Terms
The principal will be repaid by the farmer in regular instalments over the span of 3 years in accordance with the repayment schedule.
165 hectares of land are included in the Green Loan program. It is estimated that a total of 1 216 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;
- 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 second quarter of 2025. 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 10% annual interest.
CO2 emissions to be removed from the atmosphere because of this loan are equal to 3,1 million kilometres driven by an average gasoline-powered passenger vehicle.
Annualized return forecast
- Conservative scenario (€20 per carbon certificate): 17.7% IRR*
- Today's scenario (€35 per carbon certificate): 30.5% IRR*
- Optimistic scenario (€100 per carbon certificate): 83.5% 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.