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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.
-2,623,934 kg CO2e
PL0002980
Goal
41,000 €
Raised
0 €
Return rate 
21.1%
Rating
B+
Period
45
Time left
LTV
50%
Country
Poland
Loan purpose
Refinancing
Business information
Security measures
Loan history
Project owner | Address |
|---|---|
header_1 | Declared | Owned |
|---|---|---|
| Farming land | 92.00 ha | 82.00 ha |
| 2024 | 2023 | |
|---|---|---|
| Revenue | 160,337.48 € | 67,008.02 € |
| Net profit | - | - |
| Equity ratio | - | - |
Project description
Documents
Payment schedule
About the farm
The farmer has been farming since 1999, when he took over 13ha of land from his parents. Since then he has managed to expand his farm to 92ha of which he owns 82ha. The farmer on the farm works independently and is engaged in crop production, and his sowing structure is 20ha of rapeseed, 30ha of corn and 32ha of wheat, with the rest of the land being grassland. Starting next month, the farmer also begins raising beef cattle. On the farm, the farmer uses machinery such as:JOHN DEERE combine 2010
COMPIL disc harrow 2018
DURO-FRANCE strip-till unit 2018
RAUCH fertilizer spreader 2018
KVERNELAND cultivating and seeding unit 2010
The farmer plans to modernize his machinery in the next 3 years, and is particularly keen on purchasing a HORSCH seeder for no-till and a barrel truck with an adapter for slurry application.
The funds from the loan will be used to refinance a more expensive commitment at a cooperative bank.
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.
82 hectares of land are included in the Green Loan program. It is estimated that a total of 829 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 41000 EUR * 12% * 5 year = 24600 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): 13,12% IRR*
Today's scenario (€35 per carbon certificate): 21,06% IRR*
Optimistic scenario (€100 per carbon certificate): 47,68% 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.