Green loan

About the farm 

In 2013, the project owner began taking over her father's specialized crop farm. Across the two farms, the family owns nearly 1,000 ha of agricultural land, 210 ha of which is owned by the family, while the rest is rented. The owner's long-term goal is to increase the amount of land she owns in the Kaišiadorys district, known for its high agricultural productivity.

Although the farm rotates crops annually, winter and spring wheat, as well as oilseed rape, typically cover a large area. Rye and oats are also cultivated. The farmer employs no-till technology on her land.

She is currently seeking €50,000 to increase her working capital, which will be used to expand the farm. Her historical payment performance is excellent, having taken out a total of 14 loans with an overall balance of approximately €800,000. Of these, 9 loans have been fully repaid, leaving an outstanding balance of €268,000.

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.

121 hectares of land are included in the Green Loan program. It is estimated that a total of 979 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 50000 EUR * 10% * 4 year = 20000 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): 14,52% IRR*

Today's scenario (€35 per carbon certificate): 23% IRR*

Optimistic scenario (€100 per carbon certificate): 50,69% 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.