Portfolio Performance Review (November 2022)

Investors financed 1.16M EUR of agricultural projects in November on HeavyFinance. The capital was spread around 57 loans.

In total, 29.7M EUR were issued to the farmers till the end of November, 2022. To date, 7.9M EUR principal is already repaid to investors together with 2.5M EUR in interest. In November alone investors received 1.0M EUR in repayments – 796K EUR principal, 194K EUR interest and 20K delay interest.

3.2M EUR of repayments are scheduled in December.

Currently, 81.3% of loans are being paid on time or are already repaid. The overdue principal of more than 90 days is 1.54M EUR – a 386K EUR decrease from the end of October when 1.92M EUR was overdue for more than 90 days and a healthy level of 5.4% of the issued amount.

It is worth mentioning that ratings B+ and C+ were introduced at the beginning of 2022, therefore, there are fewer defaults in this rating category.

The graph below shows the loan originations, principal repayments and interest payments for each quarter. Let’s take Q3 2020 as an example. Over this period, 451 thousand EUR of loans were funded, of which 431 thousand EUR have already been repaid together with 52 thousand EUR of interest. 20 thousand EUR is late for less than 90 days. (If at least 1 instalment is overdue, we treat the whole principal amount as being late).

Recovery

During November 86.5K EUR was recovered from defaulted loans and distributed to investors. A total recovered amount from defaults amounts to 734K EUR.

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

As the majority of the farmers are finalising their harvest and payments are expected within 30 to 90 days from the delivery – HeavyFinance investors can expect a large influx of loan repayments in December, 2022.

Bulgaria

During the whole period (since April 2021), 2.35M EUR of loans were issued in Bulgaria and 75% of these loans are being paid on time or have been repaid already earning investors 193K EUR of interest. 36K EUR is overdue for more than 90 days.

In November alone investors received 246K EUR from Bulgarian farmers – 226K principal, 17K interest and 3K delay interest.

The distribution of delay buckets is presented below:

A total of 169K EUR reached 90 days overdue at some point in their lifetime. 64K EUR are already recovered and distributed to investors. Loans that defaulted 10 months ago are recovered in full with additional interest, while 72.5% of the loans that defaulted 8 months ago are already recovered.

 

Latvia

During the whole period (since May 2021) 1.37M EUR of loans were issued in Latvia. 97% of loans issued are being paid on time or have been repaid already earning investors 113K 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 November alone investors received 16K EUR from Latvian farmers – 3K principal, 12K interest and 204 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

During the whole period (since June 2020), 20.5M EUR of loans were issued in Lithuania, 82% of loans issued are being paid on time or have been repaid already earning investors 1.94M EUR of interest. 1.21M EUR is overdue for more than 90 days.


In November alone investors received 670K EUR from Lithuanian farmers – 527K principal, 129K interest and 15K delay interest.

The distribution of delay buckets is presented below:

A total of 2.8M EUR reached 90 days overdue at some point in their lifetime. 665K EUR are already recovered and distributed to investors. Loans defaulted in 2021 Q3 are recovered in full with additional interest

Poland

During the whole period (since December 2021) 2.94M EUR of loans were issued in Poland. 79% of loans issued are being paid on time or have been repaid already earning investors 150K EUR interest. 135K EUR is overdue for more than 90 days.

In November alone investors received 56K EUR from Polish farmers – 29K principal, 26K interest and 2K delay interest.

The distribution of delay buckets is presented below:

A total of 135K EUR reached 90 days overdue at some point in their lifetime. As Poland is our newest market and all defaults are fresh – recovery takes time. At the moment 632 EUR are already recovered and distributed to investors.

Portugal

During the whole period (since December 2021) 1.31M EUR of loans were issued in Portugal. 70% of loans issued are being paid on time or have been repaid already earning investors 93K EUR interest. 148K EUR is overdue for more than 90 days.

In November alone investors received 22K EUR from Portuguese farmers – 11K principal, 10K interest and 1K EUR delay interest.

The distribution of delay buckets is presented below:

A total of 151K EUR reached 90 days overdue at some point in their lifetime. 4K EUR are already recovered and distributed to investors. Half of this late amount reached 90 days in October, so the recovery will kick in with time.

HeavyFinance team is still bullish on the repayments inflow current quarter. As the majority of the farmers are finalising their harvest and payments are expected within 30 to 90 days from the delivery – HeavyFinance investors already witnessed a larger influx of loan repayments in November, and even larger amounts should be repaid in December 2022.

Happy investing!

HeavyFinance team

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