Žalioji paskola

About the farm

He has been farming since 2014 and is an entrepreneur in cereals and dairy cattle farming. The total cultivated area is 238,85 ha, of which 20 ha are owned. 87 % of the farm's income comes from the sale of cereals and the rest from the sale of milk and cattle.

The owner of the project is persistent in his efforts to develop and expand the farm: a tractor was purchased in 2016 under the measure "Support for investments in agricultural holdings" of the Lithuanian Rural Development Programe 2014-2020, and a spreader and a sprayer in 2017. The farmer has innovated the way he works the land, i.e. he is using the no-till technology .

This is not the farmer's first project on the HeavyFinance platform, and he is currently borrowing to refinance an existing loan under a green loan.

Awaiting appraisal of the equipment, with a value of at least EUR 58 200.

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 1173 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 42300 EUR * 12,5% * 5 year = 26437,5 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): 13,62% IRR*
Today's scenario (€35 per carbon certificate): 21,77% IRR*
Optimistic scenario (€100 per carbon certificate): 48,97% 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."