Create an account to make your first investment in only few steps!
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.
-4,479,888 kg CO2e
LT0003334
Goal
45,000 €
Raised
19,450 €
Return rate 
12.8%
Rating
B+
Period
36
Time left
LTV
89%
Country
Lithuania
Loan purpose
Land purchase
Business information
Security measures
Loan history
Project owner | Address |
|---|---|
header_1 | Declared | Owned |
|---|---|---|
| Farming land | 146.78 ha | 30.00 ha |
| 2024 | 2023 | |
|---|---|---|
| Revenue | 203,772.00 € | 142,326.00 € |
| Net profit | 107,811.00 € | 22,690.00 € |
| Equity ratio | 65.78% | - |
Project description
Documents
Payment schedule
A grain farm located in the Pasvalys district has been operating since 2003 and specializes in the cultivation of wheat, rapeseed, and other agricultural crops. Its long operating history reflects the farmer’s accumulated experience and ability to maintain stable and consistent agricultural operations under changing market and climatic conditions.
The farmer’s holdings comprise 146.78 hectares of arable land, of which 30 hectares are owned, while the remaining area is cultivated on other lawful grounds. A significant proportion of owned land forms a solid operational base, ensures business continuity, and reduces long-term risk.
The farm’s machinery fleet includes a combine harvester, a tractor, a sowing machine, a sprayer, a trailer, and other tillage equipment required for core arable farming operations. The farmer cultivates the land using no-till technology, which helps optimize costs, preserve soil structure and moisture, and contributes to more sustainable farming practices.
The farmer has applied to InSoil for a green loan to be used for settling obligations with suppliers and balancing working capital needs. The purpose of the loan is to ensure the smooth continuation of farm operations and the timely fulfilment of current obligations.
The loan will be secured by the pledge of eight land plots with a total area of 6.91 hectares. The collateral value has been determined in accordance with data from the Centre of Registers. This security provides additional protection for investors and significantly reduces the overall project risk.
Taking into account the farm’s long operating history, large cultivated land area, significant proportion of owned land, sustainable farming practices, clear loan purpose, and the provided collateral, this project may be considered a reliable and moderate-risk investment opportunity for the InSoil investor community.
Main Terms
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.
140 hectares of land are included in the Green Loan program. It is estimated that a total of 714 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 45000 EUR * 12% * 4 year = 21600 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): 7,89% IRR*
Today's scenario (€35 per carbon certificate): 12,82% IRR*
Optimistic scenario (€100 per carbon certificate): 29,64% 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.