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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.
-8,991,775 kg CO2e
LT0003173
Goal
80,900 €
Raised
80,900 €
Return rate 
12%
Rating
A
Period
59
Time left
LTV
89%
Country
Lithuania
Loan purpose
Working capital
Business information
Security measures
Loan history
Project owner | Address |
|---|---|
header_1 | Declared | Owned |
|---|---|---|
| Farming land | 298.99 ha | 210.46 ha |
| 2024 | 2023 | |
|---|---|---|
| Revenue | 275,412.00 € | 277,931.00 € |
| Net profit | 107,758.00 € | 62,426.00 € |
| Equity ratio | 83.58% | - |
Project description
Documents
Payment schedule
The crop farm, established in 1998, currently operates 298.99 ha of declared agricultural land, of which 210.46 ha are owned and 88.53 ha are leased under long-term agreements. In total, the broader family farming structure manages more than 1,000 ha, although this specific farm is administered as an independent operational unit.
The farm focuses on growing wheat, oilseed rape, beans, and peas. Production is carried out using no-till cultivation technology, which reduces fuel and labour costs and improves soil structure across the entire cultivated area. Crop rotation and intermediate cover crops are applied to maintain soil balance and long-term productivity.
The existing technical base enables all production processes to be performed independently: the machinery fleet consists of a relatively new combine harvester, three tractors, no-till cultivation implements, and additional supporting equipment. This machinery ensures an uninterrupted production process and reduces the need for external contracting services.
The invested capital is allocated to working capital needs during the seasonal cycle. The funds are used for fuel, machinery maintenance, repairs, supplier payments, labour costs, and other operating expenses incurred before harvest income is received. Working capital financing ensures smooth and continuous agricultural activity throughout the season.
The value of the pledged land assets is determined according to Registrų Centras (the National Land Registry) data. Based on the RC valuation, the average value of the pledged area amounts to approximately €2,584/ha, while according to the farmer’s information and the Agricultural Land Value Map, the actual regional market price for comparable land is approximately €6,000–7,000/ha.
The farm maintains a clean payment history, with obligations fulfilled on time. Long-term operational experience, a substantial share of owned land, and a consistent production cycle form a strong basis for the continued operation of the farm and the effective utilisation of capital.
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.
282 hectares of land are included in the Green Loan program. It is estimated that a total of 2156 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 80900 EUR * 9,5% * 6 year = 46113 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): 7,36% IRR*
Today's scenario (€35 per carbon certificate): 12,05% IRR*
Optimistic scenario (€100 per carbon certificate): 28,36% 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.