Bamboo bond delivers first fixed return

Line Spacing+- AFont Size+- Print Forward to a friend
Bamboo bond delivers first fixed return

Emerald Knight, the ethical investment specialist, has delivered its first fixed annual return of between 3.79% and 5.00%, depending on the size of the initial investment, to investors in its exclusive asset-backed bamboo bond.

The bond, which invests in bamboo plantations in Central America, has an investment period of 15 years and provides an increasing fixed annual income return, culminating in a final year return of up to 55% and a total return of up to 503%.

The firm says that bamboo is the fastest growing land plant on earth and can reach its full height in just one year rather than the 20 years taken for traditional timber. As a result, it can create 20 times more timber per hectare than other hard or softwoods.
 
And as well as absorbing 35 per cent more carbon dioxide than any other similar species, bamboo can be used as a substitute for traditional timber in virtually any product at a lower cost, higher quality and greater environmental impact.

It’s estimated that the world bamboo market stands at around $10bn today, and the World Bamboo Organisation says that it could double in five years.

Emerald Knight Director James Howard, says:

“The bamboo bond is performing exactly to its original target, which gives our investors the reassurance they need in an uncertain market.
With its exceptional green credentials and high productivity, bamboo represents one of the most secure investments available in a timber market where prices have risen consistently for more than 100 years, and is set to become the sustainable timber source of the future.”

The 15-year bond, which raised $12 million from investors over an eight month period, comes in three denominations - £16,500, $27,000 and $50,000. Investors purchased the bond from a UK trustee who has guaranteed security of the assets until their full maturity whilst paying out a fixed return every year. Furthermore, investors are free to sell on or transfer their bond to a third party at their own discretion.

No Comments

This Article Has No Comments Yet

But you can be first to leave a comment

Latest from Property Reporter

How many new first-time buyers so far in 2015?

New 95% LTV range launched at TSB

New homes targets in the capital feasible due to planning surge

How much can a park view add to the value of your home?


Latest from Commercial Reporter

In the Spotlight with Karen Bennett, Sales & Marketing Director, Shawbrook Bank

Lender supports BoE concerns over buy-to-let

Vince Cable to speak at trade body conference

Keystone launches new range with new funding


Latest Comments

We might wish that this change wasn't necessary, but understand that under EU law and as a reflection of the strength of the UK economy it is.

view article
michael moore
michael moore 02 Jul 2015

So 2 options to deal with the loss: First use some of the 1.4BN fine income or secondly put up industry fees which subsequently then have to be recovered from client fee income increases followed by the...

view article

Looking ahead, our chief concern is that UK mortgage borrowers face another wave of changes headed their way in the shape of the Mortgage Credit Directive.

view article

Buyers already struggle post the Mortgage Market Review now that lending is more conservative and it's unlikely that with house prices still rising in many places the Government would allow anything that...

view article

Long deferral and clawback will in some cases be essential to ensuring that rewards are more closely aligned to the maturity of the risk.

view article

Today's announcement from Legal & General is another important milestone as the equity release industry continues to shift into a higher gear.

view article

One thing is for sure, regulation is coming and the market two or three years from now is likely to be a very different one.

view article

We do not view this increase as a short term phenomenon - with interest rates unlikely to be hiked, and consumer finances improving, growth should continue into the second half of 2015.

view article

If, as this report suggests, the extent of the drop-off in annual prices between March and April is due to the price slowdown in London, this underlines quite powerfully the extent to which the capital...

view article

Encouragingly for first-time buyers they are paying less to service their mortgage than at any time since 2005 when the CML started measuring this.

view article

The proposed valuation changes are broadly helpful for SIPP operators as they’ll reduce the amount of work required each quarter.

view article

The latest indicators of economic activity have shown growth continuing, although the second estimate of GDP growth for the first quarter held the initial estimate of just 0.3% growth.

view article

In The Spotlight

In the Spotlight with Steve Wilkie, Responsible Equity Release

We spoke to Steve Wilkie, managing director at Responsible Equity Release, about the impact of MMR on the market and the myths of equity release. Read more

Features

What’s in a name – broker or adviser – does it matter?

This is an interesting question, and one that I’ve been asked on a few occasions. And absolutely, Yes! It matters. Read more

Latest Tweets

Subscribe To Our Mailing List