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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.
-3,036,403 kg CO2e
LT0002034
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Dirbama žemė | 400.14 ha | 299.67 ha |
| 2023 | 2022 | |
|---|---|---|
| Revenue | 388,861.00 € | 415,555.00 € |
| Net profit | -14,046.00 € | 135,238.00 € |
| Equity ratio | 42.7% | - |
Documents
Payment schedule
About the farm
We invite you to invest in a farmer who is committed to high quality production and sustainable agriculture.
The farmer, who has been farming since 1995, has 400 ha of land, of which 299.67 ha are owned. The farm grows wheat, barley, triticale, rape, beans and peas.
The farmer uses the method of no-till farming on his farm and plans to expand his farm in the future by increasing the size of the farmland.
The farm's technical fleet consists of three reliable and efficient tractors, a high-end combine harvester, a direct stubble seeder, a regular seeder, a sprayer, a harrow, two cultivators, a packer, a soil compactor, a grain dryer, four tractor trailers, a new smart fertiliser and other necessary equipment for efficient management of the fields and a high quality of the harvest.
The farmer works together with his son, and during the season additional worker is hired to ensure efficient harvesting.
The farm is currently borrowing to increase its working capital, to renew the combine harvester and to prepare for the new season.
Join us to help further develop this promising farm while ensuring its growth and development.
Main Terms
The principal will be repaid by the farmer in regular instalments over the span of 4 years in accordance with the repayment schedule.
All 94,89 hectares of land are included in the Green Loan program. It is estimated that a total of 873 carbon certificates will be generated in 5 years (based on a conservative estimation). Consequently, investors will receive a portion of sales proceeds from every carbon certificate generated throughout the span of 5 years as the following terms;
- 60% of income share during the loan period
- 40% of income share for the following year after the loan period
It is expected that the first carbon certificates will be generated and sold in the third 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 4 years has elapsed, it undertakes to reimburse 12% annual interest.
Annualized return forecast
- Conservative scenario (€20 per carbon certificate): 17.4% IRR*
- Today's scenario (€35 per carbon certificate): 29.9% IRR*
- Optimistic scenario (€100 per carbon certificate): 82.1% IRR*
Read more about the return scenarios in 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.