Green loan

About the farm

Insoil invites you to invest in a loan for a crop farm. The farm has been operating since 2006 in Biržai district. The farmer declares more than 173.26 ha of land, of which 85 ha are owned. The farmer grows wheat, rapeseed, peas and beans. The project owner works alone on his farm and does not hire any people.

The machinery fleet consists of a tractor, a combine harvester, a sowing machine and other necessary equipment. 

This is farmer's first loan on a Insoil platform. Now the farmer is asking for a green loan to bought land. 

Main Terms

The principal will be repaid by the farmer in regular instalments over the span of 5 years in accordance with the repayment schedule. 106 hectares of land are included in the Green Loan program. It is estimated that a total of 1287 carbon certificates will be generated in 6 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 37200 EUR * 11% * 6 year = 24552 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): 13,6% IRR*

Today's scenario (€35 per carbon certificate): 21,62% IRR*

Optimistic scenario (€100 per carbon certificate): 48,41% 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.