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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.
-3,839,904 kg CO2e
LT0002047
Goal
49,700 €
Raised
49,700 €
Return rate 
32.5%
Rating
A
Period
41
Time left
LTV
90%
Country
Lithuania
Loan purpose
Working capital
Business information
Security measures
Loan history
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 219.68 ha | 143.00 ha |
| 2023 | 2022 | |
|---|---|---|
| Revenue | 359,590.00 € | 175,975.00 € |
| Net profit | 125,767.00 € | 67,795.00 € |
| Equity ratio | 32.93% | - |
Project description
Documents
Payment schedule
About the farm
In 2005 project owner started her farm in Biržai district. She was influenced by her husband with whom she has been farming before. Together they grow beans, wheat and barley in farmer's declared farmland of 219,68 hectares of which she owns 143 ha.
Farmer's machinery fleet consists of a harvester, a seeder, a cultivator, trailers and some smaller pieces of equipment. Together with her husband project owner hires 3 employees that works on the farm.
The crops she grows are sold to UAB Agrorodeo, UAB Skandagra, UAB Agrochema, UAB Biržų bekonas." Farmer has plans to grow cattle in the future.
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.
120 hectares of land are included in the Green Loan program. It is estimated that a total of 1 105 carbon certificates will be generated in 5 years (based on a conservative estimation). Consequently, investors will receive below indicated portion of sales proceeds from every carbon certificate generated from the land of the project owner involved in the program;
- 60% of income received during the loan period;
- 40% of income received 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 project owner withdraws from the Carbon Credits Agreement, the project owner shall reimburse an annual interest rate as of 11%
Annualized return forecast
- Conservative scenario (€20 per carbon certificate): 19% IRR*
- Today's scenario (€35 per carbon certificate): 32,5% IRR*
- Optimistic scenario (€100 per carbon certificate): 89,1% 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.
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.