Green loan

About the farm

Since 1995, a crop farm has been established in the Ukmergė district, specializing in wheat, rapeseed, and other crops. The farm consists of 122.02 hectares of arable land, of which 57.39 hectares are owned by the farmer.

The farmer's machinery fleet includes a combine harvester, a tractor, a seeder, a sprayer, a trailer, and other cultivation equipment. He cultivates the land using no-till farming technology.

The farmer has applied to the HeavyFinance community for a loan to purchase additional land and pledges his owned land as collateral.

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.

100 hectares of land are included in the Green Loan program. It is estimated that a total of 978 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 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 40000 EUR * 11,5% * 5 year = 23000 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): 13,17% IRR*

Today's scenario (€35 per carbon certificate): 21,03% IRR*

Optimistic scenario (€100 per carbon certificate): 47,12% IRR*

*The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. 

Keep in mind that the return forecast is an estimation and does not guarantee you the returns mentioned above.