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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.
-4,159,896 kg CO2e
LT0002065
Goal
57,500 €
Raised
57,500 €
Return rate 
30.5%
Rating
B
Period
40
Time left
LTV
85%
Country
Lithuania
Loan purpose
Equipment purchase
Business information
Security measures
Loan history
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 178.95 ha | 72.99 ha |
| 2023 | 2022 | |
|---|---|---|
| Revenue | 364,956.00 € | 259,834.00 € |
| Net profit | 6,620.00 € | 27,019.00 € |
| Equity ratio | 26.99% | - |
Project description
Documents
Payment schedule
About the farm
Since 1998, farmer in Radviliskis has been running a cereal farm, growing wheat, oilseed rape and other crops. The farmer's holdings comprise 178,95 hectares of arable land, of which 72,99 ha are owned by the farmer, but at least 300 ha will be declared this year.
The farmer's machinery fleet consists of a new combine harvester, a new tractor, a sowing machine, a sprayer, a trailer and other tillage equipment. The farmer has been working the land for about three years and uses modern non-arable farming technology.
The farmer has applied to the HeavyFinance community for a green loan, which he will use to purchase additional machinery.
As collateral for the loan, he is mortgaging three plots of land that he owns.
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.
130 hectares of land are included in the Green Loan program. It is estimated that a total of 1 196 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 13%
Annualized return forecast
- Conservative scenario (€20 per carbon certificate): 17,8% IRR*
- Today's scenario (€35 per carbon certificate): 30,5% IRR*
- Optimistic scenario (€100 per carbon certificate): 83,6% 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.