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Green loan
Green Loan is a type of financing that enables farmers to use the proceeds for projects contributing to the environment. For investors, Green Loans give an opportunity to indirectly contribute to the generation of high-quality soil carbon credits, which are later sold on the Voluntary Carbon Market and receive part of the proceeds from their sale.
LT0001238
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Dirbama žemė | 417.46 ha | 199.49 ha |
| 2022 | 2021 | |
|---|---|---|
| Revenue | 596,150.00 € | 537,651.00 € |
| Net profit | 126,653.00 € | 10,139.00 € |
| Equity ratio | 56.12% | - |
Documents
Payment schedule
Can capital help solve climate change?
What are carbon certificates?
About the farm
This green loan is aimed to support a regenerative farm declaring 417 hectares of arable land. Established in 2005 in Šiauliai district (Lithuania), the farm has been growing wheat, barley, rape, and other crops.
Over the last 17 years in operations, the farm owner has been expanding his farm territory and today he cultivates a total area of 417,46 hectares, of which 199,49 hectares are owned.
The machinery fleet consists of two tractors, a combine harvester, a sewing machine, a grain transport trailer, and other machinery. The farmer uses the most modern technologies for cultivation, one of which is the practice of No-till farming.
With this Green Loan, the businessman is seeking to purchase a brand new Massey Ferguson MF8S.285 tractor. The loan will be backed by a first lien mortgage on the tractor to be purchased together with the tractor Claas Arion 610 that he already owns.
Main Terms
The principal will be repaid by the farmer in regular instalments over the span of 4 years in accordance with repayment schedule.
All 417 hectares of arable land are included in the Green Loan program. It is estimated that this farm will generate up to 7 681 carbon certificates in 10 years (based on a conservative estimation). Consequently, investors will additionally receive a portion of sales proceeds from every carbon certificate generated throughout the span of 10 years.
It is expected that the first carbon certificates will be generated and sold in the first quarter of 2025. The exact return will depend on the amount of sequestered CO2 levels and the sale price of the carbon certificates.
If the farm withdraws from the Green Loan without a period of at least 10 years have elapsed, it undertakes to reimburse 12% annual interest.
CO2 emissions to be removed from the atmosphere because of this loan are equal to 24,5 million kilometres driven by an average gasoline-powered passenger vehicle.
Annualized return forecast
- Conservative scenario (€20 per carbon certificate): 17.0% IRR*
- Today's scenario (€35 per carbon certificate): 26.1% IRR*
- Optimistic scenario (€100 per carbon certificate): 56.1% IRR*
Read more about the return scenarios in the the document section
*The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. Learn more about it
Keep in mind that the return forecast is an estimation and does not guarantee you the returns mentioned above.
Project risks
Please note that investing in this project carries inherent risks, including the potential for the loss of profits and invested funds.
In the event that the Project Owner fails to fulfil their obligations, HeavyFinance will take all necessary measures to safeguard the interests of investors and utilise the provided collateral. However, the Platform Operator does not guarantee the complete fulfilment of the Project Owner’s obligations.
There is also the possibility that carbon certificates may not be generated due to various reasons, such as the actions of Heavy Finance UAB, the project owner, or external factors.
Due to changes in market conditions, measurement methodologies and other factors, the price of carbon certificates is subject to change.