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.
-1,279,968 kg CO2e

LT0003100

Goal
17,000 €
Raised
17,000 €
100%
Return rate
19.8%
Rating
A+
Period
48
Time left
LTV
83%
Country
Lithuania
Loan purpose
Investment to increase production
Business information
Security measures
Loan history
Project owner Address
Xxxxxx Xxxxxxxx Xxxxxxxxxxx
Šxxxxėxų xx., Šxxxxėxų xxx., Xxxxxxxšxxx x. xxx.
header_1 Declared Owned
Farming land45.52 ha11.86 ha
20242023
Revenue 105,952.00 € 66,727.77 €
Net profit 37,159.00 € -
Equity ratio 39.39% -
Project description
Documents
Payment schedule

Investment Opportunity – Family Farm in Radviliškis District

We invite you to invest in a family-run farm operating successfully since 2015 in the Radviliškis district, consistently focusing on high-quality production, the implementation of modern technologies, and sustainable development.

The farm cultivates wheat, rapeseed, barley, and beans. The farmer currently manages 45.52 ha of land, including 11.86 ha owned. Together with the land managed by the spouse, the family operates around 120 ha in total. The farm applies no-till and strip-till practices that preserve soil structure and improve fertility.

The operation is equipped with modern Western machinery: John Deere tractor and combine, Valtra and Valmet tractors, a John Deere sprayer, a Väderstad seeder, disc and tine cultivators, and other equipment, ensuring efficient work throughout the production cycle.

Use of Funds & Key Metrics

  • Working capital strengthening, planned land purchase and equipment renewal.
  • Annual revenue: €105,952
  • Net profit: €37,159
  • Equity ratio: 39.39%


Current Debt & Track Record

An active loan LT0002363 – €10,000 is being repaid on time with no delays; current outstanding balance: €4,523.40. This demonstrates a reliable credit history.


Security

The new loan will be secured by farmland with a total value of €20,590, resulting in an LTV of 83%.



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.

40 hectares of land are included in the Green Loan program. It is estimated that a total of 407 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 17000 EUR * 10% * 5 year = 8500 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): 12,3% IRR*
Today's scenario (€35 per carbon certificate): 19,76% IRR*
Optimistic scenario (€100 per carbon certificate): 44,76% 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.