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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.
-5,119,872 kg CO2e
LT0003483
Goal
56,200 €
Raised
1,628 €
Return rate 
12%
Rating
A+
Period
60
Time left
LTV
90%
Country
Lithuania
Loan purpose
Working capital
Business information
Security measures
Loan history
Project owner | Address |
|---|---|
header_1 | Declared | Owned |
|---|---|---|
| Farming land | 593.33 ha | 347.35 ha |
| 2024 | 2023 | |
|---|---|---|
| Revenue | 921,757.00 € | 954,757.00 € |
| Net profit | 129,222.00 € | 110,944.00 € |
| Equity ratio | 43.68% | - |
Project description
Documents
Payment schedule
The farm has been operating in the Šakiai district since 1999 and currently cultivates 593.33 hectares of land, of which 347.35 hectares are owned. The remaining land is leased under long-term agreements. The farm specialises in crop production, growing wheat, oilseed rape, beans, and peas. Farming practices are based on sustainable strip-till (reduced tillage) technology, which helps lower energy consumption, preserve soil structure, and ensure long-term productivity. Crop rotation and cover crops are also applied to maintain soil balance and fertility.
The farm’s technical base includes two combine harvesters, four tractors, trailers, a fertiliser spreader, a sprayer, cultivators, grain storage facilities, and a grain dryer. This machinery fleet allows the farm to independently carry out all key field operations across large areas, reducing reliance on external service providers. The level of mechanisation fully meets the needs of a large-scale crop farm.
The capital structure ensures a solid share of own funds in operations, while stable profitability supports a consistent production cycle across the cultivated land area.
The current financing is intended for working capital, ensuring smooth seasonal operations, maintaining financial flexibility, and supporting stable business continuity.
Collateral for the loan is an agricultural land plot of 9.7021 hectares, valued at EUR 62,700 (according to data from the Centre of Registers).
The farm has a solid repayment history and consistently meets its financial obligations on time. Long-term operational experience, a significant share of owned land, a well-developed technical base, and stable financial performance provide a strong foundation for the farm’s continued operations and development.
Main Terms
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.
161 hectares of land are included in the Green Loan program. It is estimated that a total of 1232 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 56200 EUR * 9% * 6 year = 30348 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): 7,43% IRR*
Today's scenario (€35 per carbon certificate): 12,03% IRR*
Optimistic scenario (€100 per carbon certificate): 27,58% 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.