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.
-1,391,964 kg CO2e

PL0002608

Goal
19,500 €
Raised
19,500 €
100%
Return rate
22.9%
Rating
B+
Period
48
Time left
LTV
50%
Country
Poland
Loan purpose
Investment to increase production
Business information
Security measures
Loan history
Project owner Address
Xxxxxx xxxxx Xxxxxxxxxx
Xóxxxxx 61 , 66-542 Xóxxxxx
header_1 Declared Owned
Farming land43.50 ha23.00 ha
20242023
Revenue 141,807.00 € 116,621.00 €
Net profit - -
Equity ratio - -
Project description
Documents
Payment schedule

About the farm

The farmer has been running the farm since 2017.11.06, which he took over from his parents, 23 ha. He currently has 43.5 ha, including 20.5 ha leased. He produces milk on the farm. He has 75 cattle, including 40 dairy cows, 28 heifers and 8 calves.

The farmer runs a sowing structure of 10.5 ha rye, 10 ha rape, 13.70 ha grass, 1.3 wheat, 8 ha corn.
The farm uses the following machines:
-Maccormic X4.50 2018 tractor
-McHale F5500 2020 R baler
-Talex 2022 silage wrapper
-Pronar 2021 trailer
-Talex 2018 rake
-Talex 2020 hay spreader
-HMS 2019 fertilizer seeder
-Polog 2021 feeder wagon
In the next 5 years, the farmer intends to increase the area of ​​arable land on the farm to 50 ha. He plans to increase the herd of dairy cows to 60.
He intends to use the money from the loan to purchase dairy cows.

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.

44 hectares of land are included in the Green Loan program. It is estimated that a total of 440 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 19500 EUR * 12% * 5 year = 11700 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): 14,37% IRR*
Today's scenario (€35 per carbon certificate): 22,92% IRR*
Optimistic scenario (€100 per carbon certificate): 51,31% 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.