Green loan

About the farm

The farmer has been farming since 2011, when he took over 7ha from his parents. Since then he has managed to expand the farm to 95ha of which he owns 35ha. The farmer runs the farm together with his wife and they are involved in crop farming and cattle breeding. His sowing structure consists of 30ha of rapeseed, 40ha of wheat, 15ha of corn and 10ha of triticale. His herd consists of 30 milking cows, 15 heifers and 20 fattening cows.

On the farm they use machinery such as:

• NEW HOLLAND combine 2015
• NEW HOLLAND tractor 2018
• NEW HOLLAND tractor 2017
• POTTINGER no-till seeder 2018
• CLAAS round baler 2011

The most significant investment the farmer is currently making is the construction of a biogas plant, which is scheduled for completion in late 2025. The farmer has received a doatation for the construction of the biogas plant and has already made all the steps for its erection, and now they are just waiting for the work to be completed. The biogas plant is expected to increase the farmer's income by about €200,000 per year. The farmer needs the funds to purchase beef cattle and add dairy cows to expand his herd.

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.

71 hectares of land are included in the Green Loan program. It is estimated that a total of 517 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 14000 EUR * 12% * 5 year = 8400 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): 13,12% IRR*

Today's scenario (€35 per carbon certificate): 20,4% IRR*

Optimistic scenario (€100 per carbon certificate): 43,2% 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.