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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.
-3,839,904 kg CO2e
LT0003150
Goal
40,000 €
Raised
26,198 €
Return rate 
12.2%
Rating
B
Period
49
Time left
LTV
64%
Country
Lithuania
Loan purpose
Refinancing
Business information
Security measures
Loan history
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Dirbama žemė | 122.09 ha | 80.05 ha |
| 2024 | 2023 | |
|---|---|---|
| Revenue | 53,924.00 € | 74,628.00 € |
| Net profit | 6,369.00 € | 9,652.00 € |
| Equity ratio | 56.23% | - |
Project description
Documents
Payment schedule
Established in 1995 in the Ukmergė district, this grain farm represents a long-standing and steadily growing family business that has successfully adapted to modern agricultural standards. The farm cultivates wheat, rapeseed, peas, beans, and oats, while perennial grassland is also included in crop rotation to maintain soil fertility and ecological balance.
The farm manages 122.09 hectares of arable land, of which 80.05 hectares are owned, with the remainder leased. This structure allows for flexible crop planning and efficient cost management.
The farm is well-equipped with modern machinery, including a combine harvester, tractor, seeder, sprayer, and trailer, ensuring full independence in all production stages.
It applies no-till farming technology, which helps preserve soil health, reduce fuel usage, and increase carbon sequestration — directly contributing to climate change mitigation.
The farmer has approached the Insoil investor community seeking a Green Loan to refinance an existing loan from another financial institution.
This refinancing will help optimise financial obligations, reduce monthly expenses, and improve cash flow stability.
The loan will be secured by a 16.37-hectare land plot with a productivity score of 39, as appraised central statistics office of lithuania and additionally supported by a personal guarantee.
Furthermore, the farmer plans to enrol 120 hectares of farmland in the Insoil Carbon Farming Programme, allowing participation in carbon credit generation and creating an additional revenue stream from sustainable farming practices.
With nearly three decades of experience, a strong technical foundation, and a commitment to sustainable agriculture, this project represents a financially sound, low-risk, and environmentally responsible investment opportunity, combining economic efficiency with ecological value.
Main Terms
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.
120 hectares of land are included in the Green Loan program. It is estimated that a total of 765 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 40000 EUR * 13% * 5 year = 26000 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): 7,51% IRR*
Today's scenario (€35 per carbon certificate): 12,22% IRR*
Optimistic scenario (€100 per carbon certificate): 28,26% 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.