Green loan

About the farm

We invite you to invest in an organic crop farm. The farmer has been working in the agricultural sector since 2014 and currently manages a 308.06 ha farm in Švenčionys district. The crops grown there include wheat, oats, buckwheat, beans and peas.

Two tractors, a combine harvester, cultivators and other equipment are used to prepare and harvest the crops. The farmer is transitioning from arable to non-arable farming and is therefore purchasing new implements.

This is not the first loan the farmer has taken out on the HeavyFinance platform and the loan was repaid on time. He has now applied to the platform for a loan to purchase implements.

Declared land area: 308,06 ha, of which 50 ha belong to the farmer.

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 1955 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 75000 EUR * 12,5% * 5 year = 46875 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): 13,3% IRR*

Today's scenario (€35 per carbon certificate): 21,26% IRR*

Optimistic scenario (€100 per carbon certificate): 47,76% 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.