Žalioji paskola

About the farm

The farmer has been farming since 2015, when he took over the farm from his parents, since then he has expanded his farm to 37ha and he owns the whole property. On the farm he is engaged in crop production and breeding beef cattle. On the farm he works independently. His sowing structure consists of 17ha of corn, 8ha of triticale, 8ha of beets, 2ha of onions and the rest is grassland. His herd consists of 85 head of cattle .

On the farm he uses machinery such as:

• baler MCHALE 2021
• tractor KUBOTA 2021
• disc harrow AROMAR 2018
• sprayer BIARDZKI 2016
• sprinkler IDROFOGLIA 2024

The farmer plans to regularly expand his beef cattle herd from 85 head to at least 100 head over the next 3 years. In addition, he plans to increase the sowing of potatoes and onions. The loan is to be used to buy as many beef cattle as possible.

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.

34 hectares of land are included in the Green Loan program. It is estimated that a total of 248 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 2025. 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 * 11% * 5 year = 7700 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): 12,95% IRR*

Today's scenario (€35 per carbon certificate): 20,68% IRR*

Optimistic scenario (€100 per carbon certificate): 46,34% 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.