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green_loan
green_loans_description
-6,399,840 kg CO2e
LT0002545
| project_owner | address |
|---|---|
| header_1 | declared | owned |
|---|---|---|
| Farming land | 462.11 ha | 250.05 ha |
| 2023 | 2022 | |
|---|---|---|
| revenue | 437,190.00 € | 432,514.00 € |
| net_profit | 50,873.00 € | 252,598.00 € |
| equity_ratio | 36.12% | - |
documents
payment_schedule
About the farm
We invite HeavyFinance community to invest in a loan for a farm in Rokiškio District. The farm has been operating since 2005.
The farmer declares 462,11 ha of land, of which 250,05 ha is owned. The farmer grows wheat, rapeseed and other crops. The farmer's machinery fleet consists of a combine harvester, two tractors, a sowing machine, a sprayer, a trailer and other cultivation equipment. The farmer cultivates the land using no-till farming techniques.
This is the first farmer's loan on a HeavyFinance platform. The farmer is asking for a loan that will be used to working capital. The loan will be secured land plots.
Main Terms
The principal will be repaid by the farmer in regular instalments over the span of 3 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 1618 carbon certificates will be generated in 4 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 85000 EUR * 12% * 4 year = 40800 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): 15,38% IRR*
Today's scenario (€35 per carbon certificate): 24,43% IRR*
Optimistic scenario (€100 per carbon certificate): 54,16% 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.