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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.
-4,831,879 kg CO2e
LT0002197
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 202.55 ha | 55.00 ha |
| 2023 | 2022 | |
|---|---|---|
| Revenue | 251,163.00 € | 310,654.00 € |
| Net profit | 15,078.00 € | 96,384.00 € |
| Equity ratio | 31.04% | - |
Documents
Payment schedule
About the farm
We invite you to invest in a mixed organic dairy farm that is successfully operating and expanding in the Rokiškis district.
Established in 2020, the farm specializes in raising cows and selling raw milk to dairy processors, as well as cultivating grain crops (buckwheat, rapeseed, wheat, and more). Currently, the farm manages 202.55 hectares of land, of which, according to the farmer, 55 hectares are privately owned. Additionally, 15 hectares are state-leased land, and the remaining area is leased from private individuals. The farm also includes a 600 square meter milking cow barn, employee quarters/house, and other farm buildings.
The farm is the first in the Rokiškis district to install a fully robotized milking system. Currently, the farm maintains over 50 milking cows and around 40 young stock, including heifers. The total cultivated area is 150 hectares: 30 hectares of corn, 6 hectares of sweet lupins, 12 hectares of peas, 26 hectares of wheat, 40 hectares of rapeseed, 19 hectares of oats, and 17 hectares of buckwheat.
The main buyers of the farm's produce are AB Rokiškio Sūris, UAB Utenos Mėsa, UAB Raskafas, AB Linas Agro, and AB Agrokoncernas. The main suppliers include UAB RVAC, UAB Baltic Agro, UAB Ekko LT, AB Linas Agro, UAB CircleK, and UAB Velseka.
The farm utilizes modern machinery: a 2016 New Holland T7 270 tractor, a 2018 Kverneland U-Drill 6 seeder, a 2018 Manitou 733-105D telehandler, a 2022 Case IH RB545 SILAGE PACK round baler-wrapper, a 2010 Fendt 8200 Vario TMS tractor, a 2021 Siloking 12m3 mixer wagon, a 2022 Kverneland 9472 C rake, a 2022 Kverneland 4140 L mower, a 2022 KUN SUPER heavy cultivator, a 2021 Palms trailer, a 2006 Laumetris manure spreader (8M3), a 2008 Vaschieri manure spreader (L/80), two 2012 milking robots with accessories, three 2012 feed bins, four 2012 feeding platforms, and a 2012 cooling system.
The loan will be used for the purchase of a mobile milking robot.
Join this project and help to develop this promising farm, ensuring its growth and success together.
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.
151 hectares of land are included in the Green Loan program. It is estimated that a total of 1682 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;
(1) 60% of income received during the loan period;
(2) 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 2026. 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 79860 EUR * 12,5% * 5 year = 49912,5 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): 12,49% IRR*
- Today's scenario (€35 per carbon certificate): 20,62% IRR*
- Optimistic scenario (€100 per carbon certificate): 50,47% 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.