Portfolio Performance Review (October 2022)

Investors financed 997K EUR of agricultural projects in October on HeavyFinance. The capital was spread around 40 loans.

In total, 28.5M EUR were issued to the farmers till the end of October, 2022. To date, 7.3M EUR principal is already repaid to investors together with 2.3M EUR in interest. In October alone investors received 733K EUR in repayments – 522K EUR principal, 192K EUR interest and 19K delay interest.

793K EUR of repayments are scheduled in November.

Currently, 82% of loans are being paid on time or are already repaid. The overdue principal of more than 90 days is 1.92M EUR – a healthy level of 6.9% 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 October 91.4K EUR was recovered from defaulted loans and distributed to investors. A total recovered amount from defaults amounts to 647K 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 Q4, 2022.

Bulgaria

During the whole period (since April 2021), 2.27M EUR of loans were issued in Bulgaria and 74% of these loans are being paid on time or have been repaid already earning investors 173K EUR of interest. 25K EUR is overdue for more than 90 days.

In October alone investors received 138K EUR from Bulgarian farmers – 115K principal, 20K interest and 3K delay interest.

The distribution of delay buckets is presented below:

A total of 140K EUR reached 90 days overdue at some point in their lifetime. 61K EUR are already recovered and distributed to investors.

 

Latvia

During the whole period (since May 2021) 1.34M EUR of loans were issued in Latvia. 90% of loans issued are being paid on time or have been repaid already earning investors 100K EUR of interest. No loans are overdue for more than 90 days.

In October alone investors received 26K EUR from Latvian farmers – 14K principal, 11K interest and 15 EUR delay interest.

The distribution of delay buckets is presented below:

Latvian farmers are an exception, as no Latvian farmer was late for more than 90 days ever.

Lithuania

During the whole period (since June 2020), 20.1M EUR of loans were issued in Lithuania, 83% of loans issued are being paid on time or have been repaid already earning investors 1.80M EUR of interest. 1.67M EUR is overdue for more than 90 days.

In October alone investors received 501K EUR from Lithuanian farmers – 360K principal, 127K interest and 15K delay interest.

The distribution of delay buckets is presented below:

A total of 2.79M EUR reached 90 days overdue at some point in their lifetime. 582K EUR is already recovered and distributed to investors.

Poland

During the whole period (since December 2021) 2.60M EUR of loans were issued in Poland. 79% of loans issued are being paid on time or have been repaid already earning investors 122K EUR interest. 111K EUR is overdue for more than 90 days.

In October alone investors received 51K EUR from Polish farmers – 26K principal, 24K interest and 1K delay interest.

The distribution of delay buckets is presented below:

A total of 111K 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. 73% of loans issued are being paid on time or have been repaid already earning investors 82K EUR interest. 119K EUR is overdue for more than 90 days.

In October alone investors received 17K EUR from Portuguese farmers – 6K principal, 10K interest and 210 EUR delay interest.

The distribution of delay buckets is presented below:

A total of 142K EUR reached 90 days overdue at some point in their lifetime. 3K 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 remains 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 can expect a large influx of loan repayments in Q4, 2022.

Happy investing!

HeavyFinance team

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