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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.
-6,207,844 kg CO2e
PL0003015
Goal
70,000 €
Raised
25,893 €
Return rate 
24%
Rating
B
Period
48
Time left
LTV
50%
Country
Poland
Loan purpose
Working capital
Business information
Security measures
Loan history
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Dirbama žemė | 280.00 ha | 80.00 ha |
| 2024 | 2023 | |
|---|---|---|
| Revenue | 386,978.77 € | 140,179.80 € |
| Net profit | - | - |
| Equity ratio | - | - |
Project description
Documents
Payment schedule
About the farm
The farmer has been running the farm since 1993, when he started it on his own after buying 45ha of land. Since then he has managed to expand the farm to 280 hectares of which he owns 80ha. His farm specializes in crop production, but also has a beef cattle farm consisting of 20 head of cattle. On the farm, the farmer has 78ha of rapeseed, 35ha of triticale, 44ha of barley, 20ha of wheat, 17ha of rye, 16ha of grassland, and additionally has photovoltaics on 40ha.The farmer uses a number of machines on his farm, including:
CLAAS combine 2013
MASSEY FERGUSON tractor 2015
LEMKEN cultivating unit 2015
BURY sprayer 2016
AVR potato sorter 2018
The farmer has ambitious plans for the development of his farm in the next 3 years. The most significant of these are to modernize his machinery, rebuild his silos on the farm to accommodate an increase in beef cattle breeding. In addition, the farmer plans to increase his farm with an additional 20ha of leases in the near future, and this year he signed a contract to build 10 windmills of wind turbines on his farm, which will additionally allow him to increase his farm income by rent.
The loan is to be used to purchase fertilizer as the most urgent need.
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.
195 hectares of land are included in the Green Loan program. It is estimated that a total of 1971 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 70000 EUR * 13% * 5 year = 45500 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): 15,21% IRR*
Today's scenario (€35 per carbon certificate): 24% IRR*
Optimistic scenario (€100 per carbon certificate): 52,65% 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.