In April, investors allocated a total of €963K across 35 agricultural projects via the HeavyFinance platform.
As of the end of April 2024, a significant sum of €54.62 million was “issued in loans since the inception of the company.”
A positive trend worthy of mentioning is “that year over year, they’re seeing a significant increase in repayment volumes.”
Their investors are seeing direct “benefits of this in the form of interest with additional earnings from delayed interest.”
To date, the principal of 23.89M EUR “has already been repaid to investors with 5.54M EUR in interest and 974K in delayed interest.”
During April, their investors received 974K EUR in repayments – of “which 736K EUR principal, 182K EUR in interest, and 56K in delay interest. 93K EUR of repayments are scheduled for May 2024.”
As of now, based on the repayment schedule, 74.9% of loans “are being paid on time or have already been repaid.”
Meanwhile, loans with a principal overdue “by more than 90 days amount to 9.22M EUR representing 16.9% of the total issued amount.”
The increase in delinquencies “is seasonal and is expected to decrease in this and upcoming months when farmers will get part of their yearly subsidies.”
As of now, 80.2% of the payments have either “been made within the last 30 days or have already been fully settled.”
During Q1 of 2021, 1.16M EUR of loans “were funded, of which 876K EUR has already been repaid along with 186K EUR of interest. 82K EUR is being paid on time, 53K EUR is overdue for less than 90 days and 147K EUR is overdue for over 90 days. (If at least 1 installment is overdue, we treat the whole principal amount as being late).”
In April, 20 loans were fully “repaid to the HeavyFinance investors, which generated an average factual return rate of 14.84%.”
Notably, the factual return rate “ranged from 19.83% to 11.39%. The total issuance for the loans amounted to 383K EUR. Investors received 53K EUR in interest and 9K EUR in delayed interest for the loans that were fully repaid during April.”
The loan agreement was secured with equipment.
The borrower failed to “meet payment obligations, attributed to economic challenges and other factors, leading to the termination of the loan agreement in May 2023. On February 5, 2024, an application was submitted to initiate enforcement proceedings. The application marked the initiation of enforcement proceedings.”
Within one month of “initiating the enforcement proceedings, “the debtor transferred 47,512 PLN to the bailiff, proposing a new payment schedule.”
However, this proposal was dismissed by HeavyFinance’s recovery team and the bailiff. On April 25, 2024, the remaining “amount of 5,000 PLN was transferred and paid out to the investors, marking the completion of the repayment process.”
During April 2024, 53.5K EUR was recovered “from defaulted loans (loans, where the contract with the borrower is terminated and a hard recovery process was initiated) and distributed to investors. The total recovered funds from defaulted loans amount to 2.34M EUR.”
The chart below represents recovery in time. The principal amount “that defaulted in 2021 H2 is recovered in full with interest, resulting in a 110.35% recovery rate.”
Right now, the agriculture sector is fully back in “the swing of things, with all farmers back in the fields in preparation for harvest this summer, making this a perfect time to start investing.”
