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.
-7,039,824 kg CO2e

LT0002124

Goal
90,000 €
Raised
72,439 €
80%
Return rate
21%

Rating
B+

Period
47

Time left

LTV
66%

Country
Lithuania

Loan purpose
Working capital

Business information
Security measures
Loan history
Project owner Address
Xxxxxxx Xxxxxxx
Xxxxxėx x. xxx., Xxxxxxų xxx., Xxxxxxxx, Šxxxxxų x. 9
header_1 Declared Owned
Farming land313.20 ha281.69 ha
20232022
Revenue 316,310.00 € 327,674.00 €
Net profit 5,006.00 € 99,584.00 €
Equity ratio 45.96% -
Total value of pledged assets

136,000.00 €

Agricultural landID 4400-5921-813822.22 ha136,000.00 €According to independent property valuation
Personal liabilityPersonal liability of the project owner--
Read more about security measures here.
Loan number Project goal Outstanding principal Paid interest Status
LT000212490,000.00 €90,000.00 €0.00 €Raising
LT000182515,000.00 €15,000.00 €900.00 €Active
Project description
Documents
Payment schedule

About the farm

Since 2004, project owner in Akmenė has had a cereal farm in the district, growing wheat, oilseed rape and other crops. The farmer's holdings comprise 313,20 hectares of arable land, of which 281,69 ha belong to the farmer.

The farmer's machinery fleet consists of a combine harvester, two tractors, a sowing machine, a sprayer, a trailer and other cultivation equipment. The farmer works the land with no-till agricultural technology.

The farmer has applied to the HeavyFinance community for a loan which he will use to purchase new 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 2353 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 90000 EUR * 12% * 5 year = 54000 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): 12,6% IRR*
Today's scenario (€35 per carbon certificate): 21% IRR*
Optimistic scenario (€100 per carbon certificate): 53,1% 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.