Welcome to the monthly HeavyFinance performance review! You can access our previous reviews on our blog or our statistics page.
In July, investors financed 1.12M EUR of agricultural projects through HeavyFinance, with the capital spread across 37 different loans.
In total, 40.39 million EUR has been issued to farmers until the end of July 2023. The repayment volume is increasing on a year-over-year basis, and the HeavyFinance investor community is being rewarded in the form of interest and late payment fees. To date, a principal amount of 14.67 million EUR has already been repaid to investors, along with 3.82 million EUR in interest and 484K EUR in late payment fees. During July, our investors received 543K EUR in repayments, comprising 349K EUR in principal, 172K EUR in interest, and 21K EUR in late payment fees. Repayments totaling 592K EUR are scheduled for August.
Currently, based on the repayment schedules, 72.2% of loans are being paid on time or have already been repaid. The outstanding principal overdue by more than 90 days amounts to 4.83 million EUR, accounting for approximately 12% of the total issued amount.
Rating | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
A+ | 80.1% | 10.3% | 4.6% | 0.0% | 5.0% |
A | 72.7% | 7.6% | 3.5% | 0.6% | 15.5% |
B+ | 76.1% | 10.7% | 5.5% | 2.6% | 5.1% |
B | 72.6% | 10.2% | 3.6% | 1.7% | 11.8% |
C+ | 50.0% | 9.0% | 23.3% | 5.4% | 12.2% |
C | 58.9% | 2.0% | 6.0% | 4.6% | 28.5% |
Total | 72.2% | 9.2% | 4.9% | 1.8% | 12.0% |
Country | Current and repaid | <=30 | 31-60 | 61-90 | >90 |
Bulgaria | 68.7% | 16.5% | 8.3% | 2.0% | 4.5% |
Latvia | 75.9% | 13.3% | 0.8% | 0.0% | 10.0% |
Lithuania | 79.3% | 5.1% | 2.6% | 1.0% | 12.1% |
Poland | 46.1% | 20.7% | 12.6% | 5.7% | 14.9% |
Portugal | 59.0% | 12.0% | 10.4% | 1.8% | 16.8% |
Total | 72.2% | 9.2% | 4.9% | 1.8% | 12.0% |
For a more precise understanding of farmers’ repayment patterns, the HeavyFinance team has compiled a table illustrating loans with actual repayment delinquencies. Presently, 78.7% of payments have been made within the last 30 days or have already been successfully repaid.
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 | |
A+ | 85.5% | 7.7% | 3.2% | 0.5% | 3.1% | |
A | 77.5% | 4.9% | 2.5% | 8.6% | 6.6% | |
B+ | 83.3% | 10.3% | 2.7% | 2.7% | 1.1% | |
B | 78.5% | 8.5% | 1.9% | 8.0% | 3.2% | |
C+ | 73.7% | 0.4% | 17.1% | 8.8% | 0.0% | |
C | 64.1% | 13.9% | 2.6% | 18.2% | 1.3% | |
Total | 78.7% | 7.8% | 2.9% | 7.2% | 3.4% |
Rating | Payment made in the last 30 days or repaid | 31-60 | 61-90 | 91-360 | >360 |
Bulgaria | 79.8% | 8.5% | 3.0% | 5.9% | 2.8% |
Latvia | 79.7% | 9.4% | 0.0% | 9.7% | 1.1% |
Lithuania | 83.5% | 4.3% | 1.9% | 7.3% | 3.0% |
Poland | 60.6% | 21.1% | 6.4% | 6.5% | 5.4% |
Portugal | 64.6% | 13.3% | 8.6% | 7.4% | 6.0% |
Total | 78.7% | 7.8% | 2.9% | 7.2% | 3.4% |
The graph presented below illustrates loan originations, principal repayments, and interest payments for each quarter based on the repayment schedules. As an example, in Q1 of 2021, 1.15M EUR of loans were funded, with 817K EUR having already been repaid, along with 169K EUR in interest. There are currently 157K EUR being paid on time and 145K EUR overdue for more than 90 days. (In cases where at least one instalment is overdue, the entire principal amount is considered late).
Fully repaid loans in July
During July, 7 loans were fully repaid to the HeavyFinance investors. The loans listed below generated an average of 16.9% factual return rate. The highest return rate reached 18.99% while the lowest return rate was 11.44%. A total amount of 193K EUR was issued, with 26K EUR interest and 6.4K EUR delay interest received by investors for fully repaid loans in July.
Project number | Rating | Actual project terms, months | Loan amount | Interest, EUR | Delay interest, EUR | Anualized rate of return |
PL0000973 | B | 8 | 79,000.00 | 7,732.54 | 2,220.99 | 18.99% |
LT0000542 | C+ | 16 | 54,900.00 | 9,042.30 | 4,142.81 | 18.05% |
LT0000266 | B | 23 | 5,500.00 | 1,049.55 | 0.00 | 14.97% |
BG0000238 | B | 23 | 6,997.00 | 949.13 | 19.58 | 14.91% |
LT0000226 | A | 23 | 10,000.00 | 2,109.26 | 0.00 | 14.62% |
LT0000178 | B | 24 | 11,000.00 | 1,939.45 | 0.00 | 13.02% |
LT0000422 | A | 19 | 25,500.00 | 3,222.42 | 0.00 | 11.44% |
Total: | 192,897 | 26,045 | 6,383 |
One of our terminated loans was fully repaid in July 2023.
LT0000542 – terminated at 2023-03-08
The loan agreement was secured with a land plot with buildings. The borrower encountered financial difficulties and failed to make any payments from December 7, 2022. As a result, the Heavy Finance team initiated debt recovery actions, sent official notices, and ultimately terminated the loan agreement on March 8, 2023. The notary granted an enforcement order on June 28, 2023. The borrower was informed about the beginning of debt recovery proceedings and actively searched for a creditor for loan refinancing. Between June 30 and July 3, 2023, the debtor made two payments that effectively cleared all outstanding instalments, ensuring our investors have been repaid.
Recovery
In July 2023, 2.5K EUR was recovered from defaulted loans (loans where the contract with the borrower is terminated, and a rigorous recovery process was initiated) and subsequently distributed to investors. The total funds recovered from defaulted loans now amount to 1.02M EUR.
The following chart depicts the recovery timeline. The full principal amount that defaulted in the second half of 2021 has been successfully recovered along with interest, resulting in an impressive 110.35% recovery rate.
Bulgaria
Starting from April 2021, a total of 3.7M EUR in loans have been issued in Bulgaria. Remarkably, 68.7% of these loans are being paid on time or have already been repaid, resulting in a notable 362K EUR in interest and 33K EUR in delayed interest earned by investors. Additionally, an amount of 168K EUR in principal is currently overdue for more than 90 days.
For the month of July alone, investors received a cumulative sum of 47.8K EUR from Bulgarian farmers. This distribution encompasses 22.1K EUR in principal, 24.2K EUR in interest, and 1.5K EUR in delayed interest.
To provide a visual representation of delinquency, the chart below illustrates the distribution of delinquency buckets based on the repayment schedules:
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 155K EUR reached a default state at some stage during the life cycle. As of now, all the loans that have fallen into default are undergoing a rigorous recovery process, involving the seizure and auctioning of pledged assets.
Latvia
Since May 2021, 1.81M EUR of loans were issued in Latvia. 75.9% of the loans issued are being paid on time or have been repaid already, earning investors 211K EUR of interest and 5K Eur of delayed interest. 181K EUR of principal is being delinquent for more than 90 days.
In July alone investors received 19K EUR from Latvian farmers – 7.4K principal, 11.5K interest, and 83 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 215K EUR reached a default state at some stage during the life cycle. 22K EUR of defaulted loans has already been recovered, while the remaining loans amounting to 197K EUR are in legal proceedings.
Lithuania
Since June 2020, a total of 26.86 million EUR in loans has been issued in Lithuania, with an impressive 79.3% of these loans being paid on time or already repaid, bringing investors 2.65 million EUR in interest and 389,000 EUR in delayed interest. However, 3.24 million EUR of principal is currently overdue for more than 90 days.
In the recent month of July, our valued investors received a total of 253,000 EUR from Lithuanian farmers, comprising 156,000 EUR in principal, 84,000 EUR in interest, and 12,000 EUR in delayed interest.
For a comprehensive view, the distribution of delinquency levels, as per the repayment schedules, is meticulously outlined 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 cumulative sum of 3.63 million EUR transitioned into a defaulted state at some point during its lifecycle. Of this, 977,000 EUR in defaulted loans has already been successfully recovered, while the remaining loans, totaling 2.83 million EUR, are currently undergoing legal proceedings.
To offer insights into the recovery process over time, the chart below illustrates the recovery rates across different time periods:
Poland
Since December 2021, a total of 5.94 million EUR in loans have been issued in Poland, with 46.1% of these loans being paid on time or already repaid. Additionally, 20.7% of the loans have been delayed for 30 days or less, resulting in investors earning 411K EUR in interest and 43K EUR in delayed interest. However, 888K EUR of principal is currently more than 90 days overdue.
In the month of July alone, investors received a sum of 203K EUR from Polish farmers, comprising 155K EUR in principal, 41K EUR in interest, and 7K EUR in delayed interest.
For further insight, the chart below provides a visual representation of the distribution of delinquency buckets according to the repayment schedules:
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.
In total, 836K EUR entered a default state at some point during their life cycle. Among these defaulted loans, 23K EUR has already been recovered, while the outstanding loans totaling 822K EUR are currently undergoing legal proceedings.
The chart below illustrates the recovery rates over time:
Portugal
Since December 2021, 2.07M EUR of loans have been issued in Portugal. 59.0% of those loans have been paid on time or have been already repaid, and 12.0% are paying late for 30 days or less, earning investors 185K EUR in interest and 14K EUR in delay interest. 347K EUR of principal is being delinquent for more than 90 days.
In July alone investors received over 21K EUR from Portuguese farmers – 9K principal, 11K interest, and 706 EUR delay interest.
The distribution delinquency buckets according to the repayment schedules are 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 213K EUR entered a default state at some point during their life cycle. At present, all the loans are undergoing legal proceedings.
A noteworthy portion of these delinquencies originated from uncollateralized loans, prompting us to temporarily suspend the origination of such loans and shift our attention towards pledged loans. While the recovery process for uncollateralized loans is time-consuming, the HeavyFinance team is actively working on promising developments.
We anticipate a positive upturn in the overall performance of the Portugal portfolio in the upcoming months, driven by the rise in collateralised loans and the recuperation of defaulted loans.
Happy investing!
HeavyFinance team
