Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In March, investors financed 1.51M EUR of agricultural projects through HeavyFinance, with the capital spread across 57 different loans.
In total, 34.2M EUR was issued to the farmers until the end of March 2023. To date, the principal of 11.9M EUR has already been repaid to investors with 3.4M EUR in interest. During March our investors received 820K EUR in repayments – 570K EUR principal, 220K EUR interest, and 32K in delayed interest. 907K EUR of repayments are scheduled for April.
Currently, according to the repayment schedules, 77.2% of loans are being paid on time or have already been repaid. The overdue principal of more than 90 days is 3.33M EUR constituting a level of 9.7% of the issued amount. The majority of the farmers are expecting subsidies, which are due in May, to cover the overdue amounts.
Rating | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
A+ | 86.2% | 2.9% | 3.2% | 6.8% | 0.9% |
A | 79.7% | 4.0% | 1.5% | 0.9% | 13.9% |
B+ | 78.1% | 11.6% | 5.9% | 0.9% | 3.5% |
B | 77.7% | 3.4% | 5.0% | 3.7% | 10.3% |
C+ | 68.7% | 12.1% | 9.1% | 4.8% | 5.3% |
C | 55.9% | 10.2% | 1.9% | 16.6% | 15.3% |
Total | 77.2% | 5.6% | 4.0% | 3.5% | 9.7% |
Country | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
Bulgaria | 84.4% | 6.8% | 2.8% | 2.8% | 3.2% |
Latvia | 76.7% | 13.1% | 5.7% | 3.1% | 1.5% |
Lithuania | 79.4% | 3.1% | 2.8% | 3.2% | 11.5% |
Poland | 61.5% | 15.5% | 10.4% | 5.7% | 6.9% |
Portugal | 76.6% | 3.6% | 3.3% | 2.1% | 14.5% |
Total | 72.3% | 10.4% | 5.2% | 5.5% | 6.6% |
For a more accurate view on farmers’ repayment habits, the HeavyFinance team prepared a table depicting loans with factual repayments delinquencies. Currently, 83.1% of payments were made in the last 30 days or have already been repaid.
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 |
A+ | 89.4% | 2.4% | 1.1% | 6.5% | 0.6% |
A | 81.5% | 4.0% | 4.2% | 4.2% | 6.0% |
B+ | 87.6% | 6.3% | 1.2% | 3.4% | 1.5% |
B | 84.2% | 4.7% | 3.6% | 5.2% | 2.4% |
C+ | 78.3% | 12.5% | 7.8% | 1.5% | 0.0% |
C | 68.8% | 12.0% | 0.8% | 16.1% | 2.4% |
Total | 83.1% | 5.4% | 3.2% | 5.2% | 3.1% |
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 |
Bulgaria | 89.7% | 4.9% | 1.2% | 3.4% | 0.9% |
Latvia | 76.9% | 17.1% | 2.4% | 3.6% | 0.0% |
Lithuania | 83.6% | 3.3% | 3.8% | 5.6% | 3.6% |
Poland | 77.3% | 13.0% | 2.7% | 4.2% | 2.9% |
Portugal | 85.9% | 2.3% | 1.5% | 7.5% | 2.8% |
Total | 83.1% | 5.4% | 3.2% | 5.2% | 3.1% |
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules. For example, during Q1 of 2021, 1.15M EUR of loans were funded, of which 817K EUR has already been repaid along with 169K EUR of interest. 157K EUR is being paid on time and 145K EUR is overdue for over 90 days. (If at least 1 instalment is overdue, we treat the whole principal amount as being late).
During March, 19 loans were fully repaid to the HeavyFinance investors. The loans listed below generated an average of 14.67% factual return rate. The highest return rate reached 19.88% while the lowest return rate was 12.56%. The total amount of 458K EUR was issued, with 62K EUR interest and 16K EUR delay interest received by investors for fully repaid loans in March.
Good news for the investors who invested in project LT0000656. The loan defaulted on 2023 Feb 23 and it was fully repaid on 2023 March 1, yielding the return of 16.9%.
Project number | Rating | Actual project terms, months | Loan amount | Interest, EUR | Delay interest, EUR | Annualised rate of return |
LT0000853 | B+ | 8 | 9,000.00 | 450.00 | 512.46 | 19.88% |
LT0000237 | B | 20 | 10,000.00 | 1,602.88 | 855.45 | 17.63% |
LT0000549 | B | 14 | 11,500.00 | 1,212.17 | 1,010.27 | 17.58% |
LT0000733 | C+ | 10 | 20,000.00 | 2,095.76 | 613.46 | 17.25% |
LT0000656 | A | 11 | 15,000.00 | 1,582.27 | 545.94 | 16.90% |
LT0000350 | B | 17 | 11,400.00 | 1,597.16 | 955.09 | 16.76% |
LT0000024 | A | 28 | 75,000.00 | 10,675.86 | 7,384.47 | 16.58% |
LT0000340 | B | 17 | 10,000.00 | 1,800.24 | 0.00 | 15.73% |
LT0000301 | B | 18 | 10,000.00 | 1,699.27 | 206.91 | 15.42% |
LV0000706 | B | 10 | 7,000.00 | 618.75 | 22.75 | 14.37% |
BG0000384 | B | 16 | 19,907.00 | 2,382.25 | 418.87 | 14.18% |
LT0000019 | A | 30 | 20,000.00 | 3,541.44 | 1,018.32 | 14.04% |
LT0000559 | C+ | 13 | 46,130.00 | 5,860.87 | 504.13 | 13.96% |
PL0000491 | C | 15 | 14,647.00 | 1,951.73 | 0.00 | 13.49% |
LT0000754 | B+ | 10 | 11,000.00 | 916.28 | 0.00 | 13.39% |
LT0000039 | A | 27 | 83,000.00 | 16,913.92 | 982.44 | 13.11% |
PT0000915 | C+ | 7 | 33,500.00 | 2,353.47 | 0.00 | 13.05% |
LT0000356 | A | 17 | 7,000.00 | 585.68 | 43.14 | 12.60% |
PT0000565 | B+ | 13 | 43,750.00 | 4,574.75 | 1,113.49 | 12.56% |
Total: | 457,834 | 62,415 | 16,187 |
Recovery
During March 2023, 81K EUR was recovered from defaulted loans (loans, where the contract with the borrower is terminated and a hard recovery process was initiated) and distributed to investors. The total recovered amount from defaulted loans amounts to 604K EUR.
The chart below represents recovery in time. The principal amount which defaulted in 2021 Q3 is recovered in full with interest, setting a 110.35% recovery rate.
Bulgaria
Since April 2021, 3.23M EUR of loans were issued in Bulgaria with 84.4% of these loans being paid on time or having been repaid already, earning investors 285K EUR of interest. 104K EUR of principal is being delinquent for more than 90 days.
In March alone investors received 61K EUR from Bulgarian farmers – 33K principal, 27K interest, and 1K delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution of the delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 104K EUR reached default state at some stage during the life cycle. Currently all of the defaulted loans are in a hard recovery process with pledges being seized and auctioned off.
Latvia
Since May 2021, 1.7M EUR of loans were issued in Latvia. 76.9% of the loans issued are being paid on time or have been repaid already, earning investors 160K EUR of interest. 25K EUR of principal is being delinquent for more than 90 days.
In March alone investors received 26K EUR from Latvian farmers – 14K principal, 12K interest, and 177 EUR delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 22.8K EUR reached default state at some stage during the life cycle. Currently all of the defaulted loans are in court hearings.
Lithuania
Since June 2020, 23M EUR of loans were issued in Lithuania, and 79.4% of loans issued are being paid on time or have been repaid already, earning investors 2.5M EUR of interest. 2.65M EUR of principal is being delinquent for more than 90 days.
In March alone investors received 474K EUR from Lithuanian farmers – 345K principal, 108K interest, and 21K delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 3.2M EUR reached default state at some stage during the life cycle. 592K EUR of defaulted loans have already been recovered, while the remaining loans amounting to 2.6M EUR are in legal proceedings.
The quarterly recovery rates in time are presented in the chart below:
Poland
Since December 2021, 4.52M EUR of loans have been issued in Poland and 61.5% of those are being paid on time or have already been repaid, earning the investors 278K EUR in interest. 313K EUR of principal is being delinquent for more than 90 days.
In March alone investors received 101K EUR from Polish farmers – 56K principal, 40K interest, and 5K delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 135K EUR reached default state at some stage during the life cycle. 12K EUR of defaulted loans have already been recovered, while the remaining loans are in legal proceedings.
The quarterly recovery rates in time are presented in the chart below:
Portugal
Since December 2021, 1.66M EUR of loans have been issued in Portugal. 76.6% of those loans have been paid on time or have been already repaid, earning investors 147K EUR in interest. 240K EUR of principal is being delinquent for more than 90 days.
In March alone investors received over 140K EUR from Portuguese farmers – 116K principal, 20.5K interest, and 3.5K EUR delay interest.
The distribution delinquency buckets according to the repayment schedules is presented in the chart below:
The distribution delinquency buckets according to the last payment date is presented in the chart below:
The graph below demonstrates the loan originations, principal repayments, and interest payments for each quarter according to the repayment schedules.
A total of 75K EUR reached default state at some stage during the life cycle. Currently all of the defaulted loans are in court hearings or in the legal negotiation phase to cover the debts.
A significant share of delinquencies came from the uncollateralized loans, compelling us to halt the origination of such loans and redirect our focus to pledged loans. The recovery of uncollateralized loans takes time but the HeavyFinance team has some promising developments.
We expect the overall Portugal portfolio performance to improve in the coming months, fuelled by the increase in collateralised loans and the proceeds from the recovery of the defaulted loans.
Happy investing!
