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.
-6,399,840 kg CO2e

LT0002443

Goal
71,600 €
Raised
71,600 €
100%
Return rate
21.37%
Rating
B+
Period
34
Time left
LTV
60%
Country
Lithuania
Loan purpose
Equipment purchase
Business information
Security measures
Loan history
Project owner Address
Xxxxxx Xxšxx Xxxxxxšxxxxčxxxė
Xxxxxėžxx x., Xxxžxx xxx., Xxūxxxė
header_1 Declared Owned
Farming land301.91 ha100.00 ha
20232022
Revenue 447,912.00 € 354,890.00 €
Net profit 15,339.00 € -6,478.00 €
Equity ratio 29.54% -
Project description
Documents
Payment schedule

About the farm

This project gives the HeavyFinance investor community the opportunity to finance a Lithuanian crop farm. The owner of the project has almost two decades of experience in the agricultural sector. She operates a 301.91 ha farm in the Panevėžys region, growing spring and winter wheat, rapeseed and peas.

The farm's current fleet of heavy machinery consists of three tractors, a sprayer, a cultivator, a sowing machine, a combine harvester, a telescopic handler and other equipment necessary for a successful farm operation. With this project, it seeks a loan for the purchase of a combine harvester. The land is cultivated using no-till technology.

This is not the farmer's first project on the HeavyFinance platform - in total, the project owner has had 7 active contracts. She has applied for a Green Loan which will be used for the purchase of a combine harvester.

Declared land area is 301.91 ha of which 100 ha belong to the project owner.

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.

200 hectares of land are included in the Green Loan program. It is estimated that a total of 1564 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 71600 EUR * 13% * 4 year = 37232 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): 13,30% IRR*
Today's scenario (€35 per carbon certificate): 21,37% IRR*
Optimistic scenario (€100 per carbon certificate): 48,58% 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.