Žalioji paskola

About the farm

The farmer has been farming since 2011, when he took over 17ha from his father, and since then he has expanded his farm to 47ha, of which he owns 24ha. On the farm he is involved in crop production and beef cattle breeding. He works independently on the farm. His sowing structure consists of 15ha of corn, 10ha of wheat, 6ha of triticale, 3ha of barley, 4ha of rapeseed, 1ha of potatoes and the rest is grassland. His herd consists of 90 head of beef cattle.

On the farm he uses machinery such as:

• tractor NEW HOLLAND 2023
• tractor URSUS 2014
• aggregate AGRO-MASZ 2013
• plough AGRO-MASZ 2014
• baler CASE 2023

Over the next three years, the farmer plans to regularly expand his herd, with the goal of increasing the number of fattening cattle to 200, as well as buying a fodder mixing trailer after the herd expansion and increasing the grassland area. The loan is to be used to purchase calves and calf feed. 

Main Terms

The principal will be repaid by the farmer in regular instalments over the span of 4 years in accordance with the repayment schedule.

43 hectares of land are included in the Green Loan program. It is estimated that a total of 307 carbon certificates will be generated in 5 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 13200 EUR * 12% * 5 year = 7920 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): 12,86% IRR*

Today's scenario (€35 per carbon certificate): 20,2% IRR*

Optimistic scenario (€100 per carbon certificate): 43,66% 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.