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.
-1,599,960 kg CO2e

PL0001500

Goal
20,000 €
Raised
20,000 €
100%
Return rate
29.4%
Rating
A
Period
36
Time left
LTV
70%
Country
Poland
Loan purpose
Equipment purchase
Business information
Security measures
Loan history
Project owner Address
Xxxxxx Xxxxłxxxxx Xxxxxxxxxx
Xxxx 5, 14-260 Xxxxxx
header_1 Declared Owned
Farming land112.00 ha18.00 ha
20222021
Revenue 1,149,836.00 € 330,161.00 €
Net profit - -
Equity ratio - -
Project description
Documents
Payment schedule

Can capital help solve climate change?

Thanks to Green Loans, a new Heavy Finance investment product, the answer is yes!

Green Loans allow you to provide financing for environmental solutions making a real positive change to our climate while making a great return on your investment. At HeavyFinance, we open the door for retail and institutional investors to the growing market of carbon certificates, offering an opportunity for a significant return with a significant impact. We encourage you to learn more about the potential of the carbon certificate market on our blog.

What are carbon certificates?

A carbon certificate is a unit of exchange that companies and organisations can use to offset their greenhouse gas emissions. One carbon certificate is equivalent to one metric ton of greenhouse gases removed from the atmosphere, and farmers engaged in no-till practice on average remove 2.3 tonnes of carbon dioxide per hectare from the atmosphere every year.

The current market price of a single carbon certificate is within the range of 25 - 35 EUR. As more and more companies are targeting zero net emissions goals, the demand and therefore the price of carbon certificates is expected to increase over time. Moreover, as all HeavyFinance sustainability projects are verifiable and accurately track their actual carbon dioxide sequestration, the quality of our carbon certificates can be sold at a market premium, further increasing the return on investment. Read more on carbon certificate pricing in our blog and learn why HeavyFinance provides you with the best exposure to the carbon market. 

About the farm

The farmer adopted a regenerative farming method in the form of no-till, thanks to which every year at least one twenty hundred tonnes (according to the averages) of carbon dioxide are being removed from the atmosphere and sequestered into the soil. The exact amount of sequestered CO2 levels will be confirmed after periodic soil testing performed by the HeavyFinance team.

The farmer inherited the family farm in 2017 with about 16 hectares and since then he's gradually expanding it. As of today, he owns about 34 hectares and leases another 60 ha from farmers living nearby. Mr Licznierski's wife is working on the farm alongside him.

The farmer is engaged in crop production as well as livestock production (poultry and beef cattle). He has been breeding poultry since 2017 - selling 168 000 heads annually. As for beef cattle breeding, it has been running since 2015. Currently, the project owner has about 106 heads plus an additional 200 contracted with the meat factory.

This is already his 4th loan which is a part of one big financing.

Mr Licznerski grows corn, wheat and triticale on the fields he owns. After the corn harvest, the fields are sown with a regional Gorzów mix of grass.

The farmer gets excellent crops at the same time putting great emphasis on the economic welfare of the surrounding nature.
The obtained income is invested in continuous improvements of the farm, eg. machinery.
Agricultural machinery used on the farm:

  • SAME ANTARES tractor
  • URSUS c360 tractor
  • NEW HOLLAND TM 190 tractor
  • KEVERNELAND 6-plow rotary plow
  • HARDII trailed sprayer
  • KINSTAL harrow
  • METAL-TECH TS 18 trailer
  • 2 single axle trailers of load capacity 9 tons
  • fertilizer spreader
  • disc mower
  • wrapper
Investing in this Green Loan puts you and your capital right on the frontier of the climate change fight, and provides the necessary funds for the farmer to continue making a positive impact on our climate for us all.

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.

50 hectares of arable land are included in the Green Loan program. It is estimated that this farm will generate up to 920 carbon certificates in 10 years (based on a conservative estimation). Consequently, investors will additionally receive a portion of sales proceeds from every carbon certificate generated throughout the span of 10 years.

The first carbon certificates are expected to be generated and sold in the second quarter of 2024. The exact return will depend on the number of sequestered CO2 levels and the sale price of the carbon certificates.

If the farm withdraws from the Green Loan without a period of at least 10 years, it undertakes to reimburse 20,1% annual interest.

CO2 emissions to be removed from the atmosphere because of this loan are equal to 3,8 million kilometres driven by an average gasoline-powered passenger vehicle.

Annualized return forecast

  • Conservative scenario (€20 per carbon certificate): 20,1% IRR*
  • Today's scenario (€35 per carbon certificate): 29,4% IRR*
  • Optimistic scenario (€100 per carbon certificate): 59,4% 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.