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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.
-5,951,851 kg CO2e
PL0002194
Goal
74,606 €
Raised
0 €
Return rate 
36.1%
Rating
B+
Period
36
Time left
LTV
70%
Country
Poland
Loan purpose
Refinancing
Business information
Security measures
Loan history
| Project owner | Address |
|---|---|
| header_1 | Declared | Owned |
|---|---|---|
| Farming land | 440.00 ha | 35.00 ha |
| 2023 | 2022 | |
|---|---|---|
| Revenue | 778,150.00 € | 839,833.00 € |
| Net profit | - | - |
| Equity ratio | - | - |
Project description
Documents
Payment schedule
To help a farmer collect funds faster, we offer you to earn even more. When investing, use the promo code heavy2194 and get 2.00% cashback.
About the farm
The entrepreneur has been farming since 2011, when he took over 15ha from his parents. Since then he has managed to expand the farm to 440ha of which he owns 35ha. He has 2 permanent employees on the farm and is engaged in crop production, with a sowing structure of 100ha of rapeseed, 50ha of wheat, 130ha of rye and 160ha of potatoes.
The farmer is in the process of changing his potato production sales to direct sales. In April of this year, he applied for potato processing, which will allow him to wash and pack his production himself, thus skipping the middlemen in sales which will significantly increase his profitability. All the infrastructure is already prepared for this, and he should receive a positive decision within the next three months.
Funds from the loan will be used to refinance the NEW HOLLAND combine harvester.
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.
186 hectares of land are included in the Green Loan program. It is estimated that a total of 913 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 74606 EUR * 12% * 4 year = 35810,88 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): 21,11% IRR*
Today's scenario (€35 per carbon certificate): 36,13% IRR*
Optimistic scenario (€100 per carbon certificate): 98,11% 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.