Green loan

About the farm

We invite you to invest in a loan for the farmer that has been running a specialised crop farm since 2011. The farmer declares 1020.61 ha of agricultural land, of which 411.03 ha are owned.

Although the farm rotates crops every year, winter and spring wheat and oilseed rape usually cover a large area. Rye and oats are also grown.

The farmer also uses non-arable farming on his farmland. The project owner's long-term goal is to increase the area of land he owns in the Jonava district, which is characterised by high agricultural productivity.

This is the farmer's first project on the HeavyFinance platform. The farmer is currently borrowing EUR 100 000 to buy the land.

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.

220 hectares of land are included in the Green Loan program. It is estimated that a total of 2024 carbon certificates will be generated in 5 years (based on a conservative estimation). Consequently, investors will receive below indicated portion of sales proceeds from every carbon certificate generated from the land of the project owner involved in the program;

•  60% of income received during the loan period;
• 40% of income received for the following year after the loan period.

It is expected that the first carbon certificates will be generated and sold in the second 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 project owner (farmer) withdraws from the Carbon Credits Agreement and does not intend to follow the agreement on the carbon revenue split with investors, the project owner will be obliged to repay the entire loan as well as pay the penalty, calculated by multiplying the interest rate by the entire loan amount and period equal to the duration of the loan agreement plus 12 (twelve) months. Investors of this loan would receive a penalty of 100000 EUR * 12% * 5 year = 60000 EUR. This penalty can be reduced by the return earned by investors from the carbon credits generated

If the project fails to be delivered successfully through no fault of the farmer, the farmer commits to paying investors a minimum interest rate of EURIBOR 6M + 1.5%. This commitment applies in situations such as the lack of market demand for selling carbon credits, among others.

Annualized return forecast

• Conservative scenario (€20 per carbon certificate): 17,2% IRR*
• Today's scenario (€35 per carbon certificate): 29,6% IRR*
• Optimistic scenario (€100 per carbon certificate): 81,2% 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.