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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.
-1,919,952 kg CO2e
LT0002066
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 71.51 ha | 14.62 ha |
| 2023 | 2022 | |
|---|---|---|
| Revenue | 73,071.00 € | 63,598.00 € |
| Net profit | 5,048.00 € | 21,206.00 € |
| Equity ratio | 34.3% | - |
Documents
Payment schedule
About the farm
HeavyFinance invites you to invest in a loan for cereal farm in Vilnius District. The farm has been operating since 2012. The farmer declares 71,51 ha of arable land, of which 14,62 ha are owned.
The farmer grows peas, buckwheat, spelt and other late-season crops.
The farmer's machinery fleet consists of a combine harvester, a tractor, a sowing machine, a sprayer, a trailer and other tillage equipment. The farmer cultivates the land using no-till farming techniques.
This is farmer's first loan on a HeavyFinance platform. The farmer is asking HeavyFinance community for a loan to increase farm's working capital. The loan will be secured by the land plot owned by the farmer.
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.
60 hectares of land are included in the Green Loan program. It is estimated that a total of 441,6 carbon certificates will be generated in 4 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 12%
Annualized return forecast
- Conservative scenario (€20 per carbon certificate): 18,2% IRR*
- Today's scenario (€35 per carbon certificate): 31,2% IRR*
- Optimistic scenario (€100 per carbon certificate): 85,3% 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.