hit counter

Bamboo bond delivers first fixed return

Line Spacing+- AFont Size+- Print Forward to a friend Savings & Investments
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 Comments

As we move closer to the new pensions freedoms, we need to put customers at the centre of what we do. If people decide not to take up the offer of free guidance or look for advice, we need to find a way...

view article

Despite legislative attempts to protect clients, a bank will always sell its clients the most profitable product it can legally get away with. The most profitable products are the ones with the highest...

view article

The greatest challenge to the committee’s hawks are poor Eurozone growth, a housing market coming off the boil, lower than expected inflation and the spectre of a major political shift with the general...

view article

Gross mortgage lending dipped in September, suggesting that buyers have concerns about the prospect of a rate rise. However, since then, the Bank of England has sent clear indications that interest rates...

view article

In The Spotlight

Joanne Edwards, Head of Sales, Nemo Personal Finance

We spoke to Joanne Edwards, Head of Sales at Nemo Personal Finance, about the future of secured lending regulation and whether consumer service has suffered with the rising popularity of secured lending, Read more

Latest Tweets

Subscribe Our Mailing List