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.
-2,983,924 kg CO2e

LT0003005

Goal
46,100 €
Raised
46,100 €
100%
Return rate
21.01%
Rating
B+
Period
40
Time left
LTV
82%
Country
Lithuania
Loan purpose
Land purchase
Business information
Security measures
Loan history
Project owner Address
Xxxxxx Xxxxxxxx Xxxxxxxx
Šxxxxėx x. xxx., Šxxxxėx xxxxxx xxx., Šxxxxė, Xxxų x. 9, 75135
header_1 Declared Owned
Farming land125.40 ha35.80 ha
20242023
Revenue 171,529.00 € 128,103.00 €
Net profit 15,299.00 € 56,844.00 €
Equity ratio 65.02% -
Project description
Documents
Payment schedule

About the farm

The farmer has been developing a crop farming business in the Šilalė district since 2020 and currently cultivates 125.40 hectares of land, of which 35.8 hectares are owned. Farming activities are actively supported by family members – his father and mother – each managing approximately 100 hectares of land separately. In total, the family farm covers around 330 hectares of arable land.

The farm grows winter and spring wheat, rapeseed, beans, and other cereal crops.

It is equipped with the necessary agricultural machinery, including three tractors, a combine harvester, a seed drill, a sprayer, cultivators, and other equipment that ensures efficient operations and reduces dependency on external service providers.

The loan funds will be used to purchase an additional land plot, thereby increasing the share of owned land and strengthening the farm’s sustainability and long-term independence.

    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.

    93 hectares of land are included in the Green Loan program. It is estimated that a total of 943 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;
    (1) 60% of income received during the loan period;
    (2) 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 2026. The exact return will depend on the amount of sequestered CO2 levels and the sale price of the carbon certificates.


    If the project owner (farmer) withdraws from the Carbon Credits Agreement and does not intend to follow the agreement on the carbon revenue split with investors, the project owner will be obliged to repay the entire loan as well as pay the penalty, calculated by multiplying the interest rate by the entire loan amount and period equal to the duration of the loan agreement plus 12 (twelve) months.
    Investors of this loan would receive a penalty of 46100 EUR * 12% * 5 year = 27660 EUR. This penalty can be reduced by the return earned by investors from the carbon credits generated

    If the project fails to be delivered successfully through no fault of the farmer, the farmer commits to paying investors a minimum interest rate of EURIBOR 6M + 1.5%. This commitment applies in situations such as the lack of market demand for selling carbon credits, among others.

    Annualized return forecast

    Conservative scenario (€20 per carbon certificate): 13,28% IRR*
    Today's scenario (€35 per carbon certificate): 21,01% IRR*
    Optimistic scenario (€100 per carbon certificate): 46,22% 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.