Welcome to the HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In April, investors financed 1.44M EUR of agricultural projects through HeavyFinance, with the capital spread across 48 different loans.
In total, 35.75M EUR was issued to the farmers until the end of April 2023. The repayment volume is increasing on a YOY basis and the HeavyFinance investor community is rewarded in a form of interest and delay interest. To date, the principal of 12.7M EUR has already been repaid to investors with 3.2M EUR in interest and 0.4M in delay interest. During April our investors received 1.1M EUR in repayments – 835K EUR principal, 191K EUR interest, and 63K in delayed interest – the record month in terms of delay interest paid. 1.3M EUR of repayments are scheduled for May.
Currently, according to the repayment schedules, 76.7% of loans are being paid on time or have already been repaid. The overdue principal of more than 90 days is 3.70M EUR constituting a level of 10.3% 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+ | 89.4% | 7.7% | 0.0% | 2.1% | 0.8% |
A | 78.9% | 4.0% | 1.7% | 1.5% | 13.9% |
B+ | 80.4% | 11.5% | 3.1% | 1.7% | 3.3% |
B | 75.3% | 7.5% | 3.6% | 2.5% | 11.0% |
C+ | 63.3% | 14.1% | 7.3% | 7.3% | 7.9% |
C | 59.0% | 6.7% | 10.5% | 2.3% | 21.5% |
Total | 76.7% | 7.4% | 3.3% | 2.3% | 10.3% |
Country | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
Bulgaria | 85.6% | 6.5% | 3.0% | 1.1% | 3.7% |
Latvia | 88.2% | 0.9% | 1.1% | 5.4% | 4.5% |
Lithuania | 78.3% | 5.5% | 3.1% | 1.5% | 11.6% |
Poland | 63.4% | 15.1% | 5.1% | 6.4% | 10.0% |
Portugal | 63.6% | 19.4% | 3.6% | 0.6% | 12.7% |
Total | 76.7% | 7.4% | 3.3% | 2.3% | 10.3% |
For a more accurate view on farmers’ repayment habits, the HeavyFinance team prepared a table depicting loans with factual repayments delinquencies. Currently, 82.6% 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+ | 91.8% | 6.4% | 1.0% | 0.2% | 0.5% |
A | 82.8% | 1.4% | 2.2% | 6.1% | 7.6% |
B+ | 86.3% | 5.5% | 1.9% | 2.4% | 4.0% |
B | 81.0% | 8.2% | 2.4% | 6.0% | 2.3% |
C+ | 66.3% | 17.1% | 7.4% | 9.3% | 0.0% |
C | 81.6% | 5.8% | 0.3% | 10.7% | 1.5% |
Total | 82.6% | 5.9% | 2.3% | 5.4% | 3.8% |
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 |
Bulgaria | 89.6% | 5.8% | 1.0% | 2.7% | 0.9% |
Latvia | 88.2% | 0.3% | 6.9% | 4.6% | 0.0% |
Lithuania | 83.5% | 5.0% | 1.6% | 6.7% | 3.2% |
Poland | 76.1% | 10.9% | 3.2% | 2.7% | 7.1% |
Portugal | 69.5% | 9.9% | 1.5% | 6.9% | 12.1% |
Total | 82.6% | 5.9% | 2.3% | 5.4% | 3.8% |
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 April, 18 loans were fully repaid to the HeavyFinance investors. The loans listed below generated an average of 15.74% factual return rate. The highest return rate reached 22.35% while the lowest return rate was 12.10%. The total amount of 641K EUR was issued, with 97K EUR interest and 26K EUR delay interest received by investors for fully repaid loans in April.
Good news for investors who invested in project LT0000434. The loan defaulted on 2023 Mar 8 and it was fully repaid on 2023 April 11 yielding the return of 13.5%.
Project number | Rating | Actual project terms, months | Loan amount | Interest, EUR | Delay interest, EUR | Annualised rate of return |
BG0000681 | C+ | 11 | 35,875.00 | 6,476.91 | 406.87 | 22.35% |
LT0000857 | A+ | 8 | 135,500.00 | 7,356.62 | 12,317.09 | 21.00% |
LT0001162 | B | 2 | 15,000.00 | 600.00 | 0.00 | 17.66% |
LV0000468 | B | 4 | 10,100.00 | 1,723.12 | 16.93 | 16.23% |
LT0000032 | B | 4 | 10,000.00 | 1,878.00 | 889.32 | 15.77% |
LT0000083 | C | 1 | 20,000.00 | 4,389.59 | 294.14 | 15.09% |
PT0000546 | B | 2 | 10,000.00 | 1,472.15 | 1.19 | 14.39% |
LT0000802 | B | 10 | 20,000.00 | 1,817.97 | 0.00 | 14.38% |
LT0000025 | B | 5 | 95,240.00 | 26,666.79 | 6,555.24 | 14.02% |
LT0000328 | B | 6 | 73,000.00 | 14,269.92 | 0.00 | 13.82% |
LT0000434 | B | 4 | 35,000.00 | 3,743.92 | 2,384.42 | 13.53% |
LT0000728 | B+ | 10 | 13,000.00 | 1,489.47 | 1.34 | 13.33% |
LT0000731 | B+ | 11 | 13,000.00 | 1,489.53 | 1.34 | 13.03% |
LT0000153 | B | 10 | 50,300.00 | 8,014.80 | 2,012.15 | 12.93% |
LT0000445 | B | 3 | 39,000.00 | 6,072.64 | 0.00 | 12.82% |
LT0000186 | A | 9 | 12,300.00 | 1,273.05 | 479.10 | 12.73% |
LT0000126 | B | 10 | 17,000.00 | 2,029.22 | 530.41 | 12.37% |
LT0000246 | B | 8 | 36,980.00 | 6,259.74 | 0.00 | 12.10% |
Total: | 641,295 | 97,023 | 25,890 |
Recovery
During April 2023, 78K 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 funds from defaulted loans amount to 681K 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, 3.42M EUR of loans were issued in Bulgaria with 85.6% of these loans being paid on time or having been repaid already, earning investors 289K EUR of interest and 29K EUR of delay interest. 127K EUR of principal is being delinquent for more than 90 days.
In April alone investors received 98K EUR from Bulgarian farmers – 73K principal, 24K interest, and 2K 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 103K 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, 1.74M EUR of loans were issued in Latvia. 88.2% of the loans issued are being paid on time or have been repaid already, earning investors 171K EUR of interest and 5K EUR of delay interest. 78K EUR of principal is being delinquent for more than 90 days.
In April alone investors received 52K EUR from Latvian farmers – 39K principal, 13K interest, and 928 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 190K 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, 23.8M EUR of loans were issued in Lithuania, and 78.3% of loans issued are being paid on time or have been repaid already, earning investors 2.3M EUR of interest and 311K EUR of delay interest. 2.77M EUR of principal is being delinquent for more than 90 days.
In April alone investors received 784K EUR from Lithuanian farmers – 624K principal, 107K interest, and 53K 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. 681K EUR of defaulted loans have already been recovered, while the remaining loans amounting to 2.5M EUR are in legal proceedings.
The quarterly recovery rates in time are presented in the chart below:
Poland
Since December 2021, 4.9M EUR of loans have been issued in Poland and 63.4% of those are being paid on time or have already been repaid, earning the investors 297K EUR in interest and 24K EUR in delay interest. 488K EUR of principal is being delinquent for more than 90 days.
In April alone investors received 128K EUR from Polish farmers – 82K principal, 39K interest, and 7K 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 201K EUR reached default state at some stage during the life cycle. 14K 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, 1.84M EUR of loans have been issued in Portugal. 63.6% of those loans have been paid on time or have been already repaid, earning investors 146K EUR in interest and 10K EUR in delay interest. 233K EUR of principal is being delinquent for more than 90 days.
In April alone investors received over 26K EUR from Portuguese farmers – 17K principal, 9K interest, and 574 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 115K 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, fueled by the increase in collateralized loans and the proceeds from the recovery of the defaulted loans.
April Highlights
In April, HeavyFinance’s investors saw an impressive record of 1.1M EUR in repayments, with the highest-ever amount of delay interest paid. This achievement reflects the increasing repayment volume on a year-over-year basis, and it rewards the HeavyFinance investor community with substantial interest and delay interest. Also the average factual return rate peaked at 15.74%.
It’s worth noting that the majority of farmers who borrowed from HeavyFinance are expecting subsidies due in May to cover their overdue amounts, providing even greater security for our investors.
Happy investing!
