Green loan

About the farm

The farmer has been farming since 2014, when he took over 11ha from his parents. Since then, he has managed to expand his farm to 170ha of which he owns 22ha. The farmer seasonally employs workers to help with harvesting and is involved in crop production. His sowing structure is 57ha of rapeseed, 30ha of wheat, 37ha of rye, 28ha of corn, 15.5ha of lupine, 1.3ha of buckwheat, 0.5ha of potatoes, 0.4ha of onions, 0.2ha of carrots, 0.14ha of beets and 0.15ha of cabbage. On the farm he uses machinery such as:
KLAAS tractor 2019
PRONAR trailer 2019
PRONAR trailer 2018
UNIA GRUDZIEDZ subsoiler 2018
UNIA GRUDZIĄDZ no-till aggregate
LEMKEN sprayer 2019
KVERNELAND spreader 2019

The farmer plans to continue steadily expanding his farm with new leases and in the next 3 years plans to build a grain storage warehouse.
The loan funds will be used to purchase a loader and a HORSCH no-till unit.

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.

123 hectares of land are included in the Green Loan program. It is estimated that a total of 769 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;
60% of income received during the loan period;
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 36750 EUR * 13% * 5 year = 23887,5 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): 16,75% IRR*
Today's scenario (€35 per carbon certificate): 27,73% IRR*
Optimistic scenario (€100 per carbon certificate): 69,23% 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. 

Keep in mind that the return forecast is an estimation and does not guarantee you the returns mentioned above."