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.
-3,839,904 kg CO2e

LT0002132

Goal
57,700 €
Raised
57,324 €
99%
Return rate
21.1%

Rating
B+

Period
40

Time left

LTV
73%

Country
Lithuania

Loan purpose
Refinancing

Business information
Security measures
Loan history
Project owner Address
Xxxxxxx Xxxxxxxxx
Xxxxxxxšxxx x., Xxxxūxų x.
header_1 Declared Owned
Farming land169.51 ha70.00 ha
20232022
Revenue 262,457.00 € 303,754.00 €
Net profit 21,541.00 € 132,264.00 €
Equity ratio 16.61% -
Total value of pledged assets

79,550.00 €

Agricultural landID 3935-0002-02011.19 ha8,100.00 €Based on the average prices presented by Central Statistical Office and the Agency for Restructuring and Modernization of Agriculture
Agricultural landID 3935-0002-02021.41 ha9,450.00 €Based on the average prices presented by Central Statistical Office and the Agency for Restructuring and Modernization of Agriculture
Agricultural landID 3960-0002-00434.20 ha21,700.00 €Based on the average prices presented by Central Statistical Office and the Agency for Restructuring and Modernization of Agriculture
Agricultural landID 3935-0002-01581.71 ha11,300.00 €Based on the average prices presented by Central Statistical Office and the Agency for Restructuring and Modernization of Agriculture
Agricultural landID 3935-0002-18422.48 ha15,900.00 €Based on the average prices presented by Central Statistical Office and the Agency for Restructuring and Modernization of Agriculture
Agricultural landID 4400-0975-50082.04 ha13,100.00 €Based on the average prices presented by Central Statistical Office and the Agency for Restructuring and Modernization of Agriculture
Personal liabilityPersonal liability of the project owner--
Read more about security measures here.
Loan number Project goal Outstanding principal Paid interest Status
LT000213257,700.00 €57,700.00 €0.00 €Raising
LT000055222,400.00 €7,525.62 €3,497.06 €Active
LT000113711,000.00 €0.00 €806.48 €Repaid
LT000142331,500.00 €15,821.86 €2,806.18 €Active
LT000168552,500.00 €52,500.00 €4,000.76 €Active
LT000209211,000.00 €11,000.00 €119.09 €Active
Project description
Documents
Payment schedule

To help a farmer collect funds faster, we offer you to earn even more. When investing, use the promo code heavy2132 and get 2.00% cashback.


About the farm


We invite you to invest in a successful crop farm in Vilkaviskis district. The owner of the project, who has many years of experience in agriculture, has expanded his farm over the years to 169.51 ha of land, of which 70 ha are owned by the farmer. The farm produces winter wheat, winter rape, spring wheat and oats.

The farming is supported by family members and an additional helper at harvest time to allow efficient transport of the grain.

The farm uses modern machinery to ensure high quality and efficiency. The fleet consists of a John Deere 9640 WTS combine harvester, a Valtra tractor, two John Deere tractors and other necessary equipment for efficient field management and high quality harvesting. The farmer works the land using no-till farming technology.

The Green Loan investment will be used to refinance existing loans on the HeavyFinance platform and to purchase a tractor.

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.

120 hectares of land are included in the Green Loan program. It is estimated that a total of 1339 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 57700 EUR * 12% * 5 year = 34620 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): 12,7% IRR*
Today's scenario (€35 per carbon certificate): 21,1% IRR*
Optimistic scenario (€100 per carbon certificate): 52,5% 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.