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.
-6,179,044 kg CO2e

LT0002673

Goal
72,800 €
Raised
18,316 €
25%
Return rate
21.4%
Rating
B+
Period
47
Time left
LTV
80%
Country
Lithuania
Loan purpose
Working capital
Business information
Security measures
Loan history
Project owner Address
Xxxxxx Žxxxxxxxxx Xxxxxx
Xxžxxxxų x. xxx., Xxxxšxxų xxx., Xxxxšxxxx
header_1 Declared Owned
Farming land283.91 ha283.91 ha
20232022
Revenue 267,968.00 € 223,298.00 €
Net profit 77,335.00 € 5,878.00 €
Equity ratio 39.08% -
Project description
Documents
Payment schedule

About the farm

We invite you to invest in a promising crop production farm located in the Mažeikiai district, which has been striving to ensure high production quality and efficient farming since 2019.

According to last year’s declaration, the farmer cultivates 283.91 hectares of land. However, documents provided by the farmer confirm that in the second half of last year, the farm expanded to 722.0854 hectares, of which 400 hectares are privately owned. The farm specializes in growing wheat, rapeseed, barley, and peas, ensuring diverse and high-quality production.

The farm operates with modern equipment, including John Deere tractors and combine harvesters, as well as other essential machinery, ensuring efficient operations and high-quality yields. The farmer is supported by several employees who contribute to the efficiency and productivity of the farm's activities.

The loan funds will be used to increase working capital and construct a new storage facility. This investment will help optimize farm operations, ensure proper storage conditions for production, and enhance farming efficiency.

Join this project and contribute to the success and sustainable development of this growing farm!

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.

193 hectares of land are included in the Green Loan program. It is estimated that a total of 1888 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 72800 EUR * 10% * 5 year = 36400 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): 13,35% IRR*
Today's scenario (€35 per carbon certificate): 21,39% IRR*
Optimistic scenario (€100 per carbon certificate): 48,3% 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.