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.
-3,743,906 kg CO2e

PL0002641

Goal
50,000 €
Raised
50,000 €
100%
Return rate
24.4%
Rating
B
Period
36
Time left
LTV
50%
Country
Poland
Loan purpose
Working capital
Verslo informacija
Apsaugos priemonės
Paskolų istorija
Project owner Address
Xxxxxx Xxxxxx Xxxxxxxxxx
73-200 Xxxxxxxxx, Xxxxxxx 6/3
header_1 Declared Owned
Farming land250.00 ha192.00 ha
20242023
Revenue 517,097.06 € 594,339.27 €
Net profit - -
Equity ratio - -
Projekto aprašymas
Dokumentai
Mokėjimo grafikas

About the farm 

The farmer has been running the farm since 1982.05.01, he took over 7 ha from his parents. He has currently expanded the farm to 250 ha, including 58 ha of lease.

He is involved in crop production, milk production and cattle breeding on the farm. The farm is run by a family and also employs one worker.

He currently has 200 milking cows, 20 young calves and 40 adult heifers and 5 bulls.

The farmer runs a sowing structure of 67 ha of corn, 19 ha of alfalfa, 21 ha of oats, 14 ha of winter barley, 129 ha of grass.

The farm uses the following machines:

-Talerzowka 6m Unia 2018

-grubber Unia 2022

-tractor New Holland tm 2006

-tractor Massey ferguson 2019

-tractor Massey ferguson 2020

-tractor New Holland 2011

-Corn harvester class 2005

-Loader JCB 2019

In the next 5 years, the farmer intends to increase milk production, increase the herd of dairy cows to 250. He plans to buy land and lease it to expand the farm to 300 ha. The plan is to buy a new tractor Massey ferguson or New Holland.

The money from the loan is to be used for current operations.

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.

117 hectares of land are included in the Green Loan program. It is estimated that a total of 947 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 50000 EUR * 12,5% * 4 year = 25000 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): 15,28% IRR*
Today's scenario (€35 per carbon certificate): 24,38% IRR*
Optimistic scenario (€100 per carbon certificate): 54,49% 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.