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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.
-2,559,936 kg CO2e
LT0003235
Goal
29,700 €
Raised
29,700 €
Return rate 
12.25%
Rating
A+
Period
36
Time left
LTV
90%
Country
Lithuania
Loan purpose
Working capital
Business information
Security measures
Loan history
Project owner | Address |
|---|---|
header_1 | Declared | Owned |
|---|---|---|
| Dirbama žemė | 117.36 ha | 54.85 ha |
| 2024 | 2023 | |
|---|---|---|
| Revenue | 182,780.00 € | 310,792.00 € |
| Net profit | 21,915.00 € | 29,588.00 € |
| Equity ratio | - | - |
Project description
Documents
Payment schedule
FARM DESCRIPTION
The crop farm, established in 2002 in the Prienai district, has been specialising in grain cultivation for more than twenty years. The farmer currently declares 117.36 ha of arable land, of which 54.85 ha are owned, while the remaining area is managed under lease agreements. The farm is operated by a single owner, who has all the necessary machinery for efficient fieldwork, including two tractors, a combine harvester, a trailer, and various implements.
CULTIVATED CROPS
According to the 2025 land declaration, the farm grows wheat, barley, and other cereal crops. The land is cultivated using no-till technology, which reduces fuel consumption, preserves soil structure, and enhances long-term soil productivity.
FINANCIAL RESULTS (2024)
Based on the submitted financial statements, the farm demonstrates stable and profitable performance:
- Sales revenue – €133,406
- Subsidies received – €49,374
- Net profit – €21,915
The balance sheet shows total assets of €427,532, while equity amounts to €255,150. This reflects a strong financial structure with a moderate and manageable level of liabilities. The results confirm that the farm generates sufficient cash flow and is capable of meeting its financial obligations.
PURPOSE OF FINANCING
The farmer is applying to the Insoil investor community for working capital financing. The funds will be used to support farm expansion, ensure smooth preparation for the upcoming season, and settle payments with suppliers.
LOAN SECURITY
This is the farmer’s first project on the Insoil platform. To secure the loan, the farmer will pledge a 7.57 ha land plot, valued according to the official Register Centre data. The collateral provides an adequate safety level and meets Insoil’s risk management requirements.
PROJECT ASSESSMENT
Considering:
- more than 20 years of continuous farming activity,
- a large and stable cultivated land area,
- strong and profitable 2024 financial results,
- a solid equity position and balanced asset structure,
- the use of modern no-till agricultural practices,
this project is assessed as a reliable, low-risk investment opportunity, offering stable returns while contributing to efficient and sustainable agricultural development in Lithuania.
Main Terms
The principal will be repaid by the farmer in regular instalments over the span of 3 years in accordance with the repayment schedule.
80 hectares of land are included in the Green Loan program. It is estimated that a total of 408 carbon certificates will be generated in 4 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 29700 EUR * 9% * 4 year = 10692 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): 7,85% IRR*
Today's scenario (€35 per carbon certificate): 12,25% IRR*
Optimistic scenario (€100 per carbon certificate): 27,48% 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.