Portfolio Performance Review (December 2022)

In December investors financed 1.87M EUR of agricultural projects through HeavyFinance, with the capital spread across 78 loans.

In total, 30.0M EUR were issued to the farmers up until the end of December, 2022. To date, 9.7M EUR principal has already been repaid to investors together with 2.7M EUR in interest. In December our investors received 2.0M EUR in repayments – 1.8M EUR principal, 194K EUR interest and 27K in delayed interest. 

1.3 M EUR of repayments are scheduled for January.

Currently, 77.6% of loans are being paid on time or are already repaid. The overdue principal of more than 90 days is 1.49M EUR – a 43K EUR decrease from the end of November when 1.53M EUR was overdue for more than 90 days. Constituting a healthy level of 5.0% of the issued amount.

The graph below demonstrates the loan originations, principal repayments and interest payments for each quarter. For example, during Q3 of 2020, 451 thousand EUR of loans were funded, of which 431 thousand EUR have already been repaid together with 53 thousand EUR of interest. 11 thousand EUR have been paid on time and 9 thousand EUR has been overdue for a time period of less than 90 days. (If at least 1 installment is overdue, we treat the whole principal amount as being late).,

Recovery

During December 2022, 146K EUR was recovered from defaulted loans and distributed to investors. A total recovered amount from defaults amounts to 879K EUR.

In the chart below recovery in time is presented. From the loans which defaulted in 2021 H2 HeavyFinance already recovered 70.31%.

Bulgaria

Since April 2021, 2.69M EUR of loans were issued in Bulgaria with 83% of these loans being paid on time or have been repaid already. Thus, earning investors 219K EUR of interest, with 50K EUR being overdue for over 90 days.

In December alone investors received 108K EUR from Bulgarian farmers – 81K principal, 24K interest and 3K delay interest.

The distribution of delay buckets is presented below:

A total of 208K EUR has reached the point of being 90 days overdue at some stage during the lifecycle. 80K EUR has successfully been recovered and distributed to investors. While 113.7% of the loans defaulted in March 2022 have already been recovered with interest.

Latvia

Since May 2021, 1.50M EUR of loans were issued in Latvia. 88% of loans issued are being paid on time or have been repaid already earning investors 125K EUR of interest. One loan with an outstanding principal of 4.8K EUR is overdue for more than 90 days resulting in 0.3% from the total amount issued.

In December alone investors received 148K EUR from Latvian farmers – 135K principal, 13K interest and 232 EUR delay interest.

The distribution of delay buckets is presented below:

The first Latvian loan with outstanding principal of 4.8K EUR reached 90 delay days in November. Recovery process has been initiated already with the results to come in the near future.

Lithuania

Since June 2020, 21.3M EUR worth of loans were issued in Lithuania, 78% of loans issued are being paid on time or have been repaid already earning investors 2.09M EUR of interest. While 1.11M EUR has been overdue for more than 90 days.

In December alone investors received 1.67M EUR from Lithuanian farmers – 1.53M principal, 122K interest and 20K delay interest.

The distribution of delay buckets is presented below:

A total of 2.9M EUR has at some point been 90 days overdue during its lifetime. 786K EUR has already been recovered and distributed to investors. Furthermore, loans defaulted in 2021 Q3 are recovered in full with additional interest.

Poland

Since December 2021, 3.15M EUR of loans were issued in Poland. 73% of those are being paid on time or have been repaid already earning investors 178K EUR in interest. Whereas, 135K EUR has been overdue for more than 90 days.

In November alone investors received 81K EUR from Polish farmers – 53K principal, 27K interest and 2K delay interest.

The distribution of delay buckets is presented below:

A total of 177K EUR has at one point been 90 days overdue  during its lifetime. As Poland is our newest market and all defaults are fresh – recovery takes time. At the moment 6K EUR has already been recovered and distributed to investors.

Portugal

Since December 2021, 1.31M EUR of loans were issued in Portugal. 67% of those loans have been paid on time or have been repaid already. Thus, earning investors 103K EUR in interest. While 192K EUR has been overdue for a period of more than 90 days.

In November alone investors received 37K EUR from Portuguese farmers – 27K principal, 9K interest and 2K EUR delay interest.

The distribution of delay buckets is presented below:

A total of 196K EUR reached 90 days overdue at some point during its lifetime. 7K EUR has already been recovered and distributed to investors. The recovery will begin with time as more than half of this late amount reached 90 days in Q4, 2022.

Despite a turbulent year for the humanity, farmer’s fortunes were relatively good in 2022.

HeavyFinance team is bullish on the asset class it provides for investment and as determined as ever to make 2023 a profitable year for all our investors and partners.

Happy investing!

HeavyFinance team

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