Green loan

About the farm

The farmer has been running the farm since 1996, when she founded it herself, and has since expanded her farm to 197 hectares, of which she owns 22 hectares. On the farm he is engaged in crop production. He works on the farm independently, seasonally cooperating with his family from a nearby farm. Her sowing structure consists of 61ha of wheat, 34ha of rapeseed, 38ha of beet, 9ha of barley, 2ha of rye and 5ha of lupine.

The farm uses machinery such as:

• VADERSTAD agregate 2021 
• KVERNELAND field sprayer 2021 
• AGRIMEC dryer 2013 
• PICHON spreader 2015
• KVERNELAND fertilizer spreader 2022
• UNIA calcium spreader 2021 
• POMOT staging truck 2015

The farmer plans to expand the acreage regularly over the next 3 years, and wants to buy back as much of the leased land as possible. In addition, she wants to increase the acreage of strip-till farming.

The loan is to be used to buy fertilizer, crop protection products and fuel.
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. 55 hectares of land are included in the Green Loan program. It is estimated that a total of 445 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 22655 EUR * 12% * 4 year = 10874,4 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): 17,52% IRR* Today's scenario (€35 per carbon certificate): 27,58% IRR* Optimistic scenario (€100 per carbon certificate): 60,1% 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.