Žalioji paskola

About the farm

The farmer has been farming since 2007, when he inherited 17ha from his parents, and has since expanded his farm to 33.1ha, of which he owns 28ha. On the farm, he is engaged in crop production and raising pigs. He works independently on the farm. His planting structure consists of 17ha of wheat, 8ha of rapeseed, 8ha of potatoes, 10ha of corn, 3ha of cabbage, 10ha of alfalfa and 7ha of triticale. His herd consists of 38 head of sows and 370 head of fattening pigs.

On the farm he uses machinery such as:

• ZETOR tractor 2018 r.
• TOLMET sprayer 2022 r.
• AGROMASZ aggregate 2017 r.
• PRONAR spreader 2016 r.
• OVERUM plow 2015 r.

In the next 3 years, the farmer plans to expand into vegetable production. He wants to build a hall that will be used for storing vegetables. In addition, he plans to purchase a vegetable sorting line. The loan is to be used to complete the construction of the hall (electrical and insulation).

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.

32 hectares of land are included in the Green Loan program. It is estimated that a total of 320 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 13500 EUR * 12% * 5 year = 8100 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): 14,37% IRR*

Today's scenario (€35 per carbon certificate): 22,89% IRR*

Optimistic scenario (€100 per carbon certificate): 51,14% 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.