the bamboo bond ip 08 july 2011
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EcoPlanet Bamboo: The Bamboo Bond
A unique oering to invest in a Bamboo Bond. Subscriptions
are available rom $16,500 with investors receiving a Bond
interest return on investment up to 503%. Bonds are available
or a xed teen (15) year period.
This document has received input rom the custodian trustee or the project, Citadel Trustees Ltd,
who are authorized and regulated by the UK Financial Services Authority with permissions or the
saeguarding and administration o assets and arranging saeguarding and administration o assets.
Citadel is thereby permitted to hold nancial instruments, including the type o alternative debentures
used within this investment structure.
No aspect o the project other than the holding o the alternative debentures requires an FSA permission
or authorization or otherwise alls within the protection o the FSA regulatory ramework.
Contents
1. Investment Synopsis
2. Investment Security2.1. Trustee as Bond Holder
2.2. Trustee holds rst charge over all shares o EcoPlanet Bamboo II as Security
2.3. Trust Receives All Income Generated by Rio Kama Plantation
2.4. Trustee due diligence
2.5. Trustee Company as Bond Holder
3. Bond Interest Returns
3.1. Annual xed interest return
3.2. 15 Year bond redemption
4. How To Invest
4.1. Bond Subscription Procedure4.2. Trustee Fees
4.3. Exit via Bond redemption
4.4. Tax
5. The Bamboo Bond
5.1. Investing in Bamboo
5.2. Forestry as an Asset Class
5.3. Why Chose Bamboo Over Other Forestry Investments
5.4. Ensuring Maximum Returns rom the Bamboo
5.5. Underlying Assumptions
6. Risk Assessment
6.1. Risk Assessment by Category6.2. Worst Case Model Scenario
6.3. Land & Asset Security
6.4. Change o Law
Annexe 1: ABOUT ECOPLANET GROUP
Wild bamboo culms
can grow to over
30 metres tall andreach that height
in just one growing
season.
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EcoPlanet Bamboo: The Bamboo Bond
1. Investment Synopsis
Sustainable timber in all its orms represents arguably one o the most secure investments available
and bamboo is perhaps the most exciting o any timber investment.
Bamboo is the astest growing land plant on Earth and can reach its ull height in just one year rather
than the 20 years required or traditional timber. As a result, bamboo can create 20 times more timber
per hectare than other trees.
According to the United Nations Food and Agriculture Organisation, the global timber trade exceeds
$600bn per year and growing. However, supply is dwindling as 30% is o timber is produced illegally
and another 40% is rom unsustainable sources. With its exceptional green credentials and high
productivity, bamboo is set to become the sustainable timber source o the uture.
Bamboo, and particularly our species o bamboo, has some exceptional qualities. A higher tensile
strength than steel yet it is able to be used in ultra-sot clothing. Bamboo has many uses, but probably
the most important characteristic is that it can be used as a substitute or traditional timber in virtually
any product at a lower cost, higher quality and greater positive environmental impact.
As a result, bamboos demand around the world is well established and rapidly growing. The worldmarket is expected to quadruple to $20bn within the next our years alone.(Minister o Agriculture, India).
On top o its economic opportunity, bamboo is simply the best source o timber or the planet. It
sequesters our times more carbon dioxide than other timber and produces substantially more oxygen.
(Yipping et al 2010).
As a result o its exceptional environmental and mechanical qualities, bamboo plantations can deliver
exceptional returns to investors. In order or investors to benet rom these returns EcoPlanet Group
has created the worlds rst bamboo bond.
To participate in these returns investors are invited to purchase a corporate debenture; an unquoted
nancial instrument possessing the characteristics o an Alternative Finance Investment Bond,
generically reerred to in this document as a Bond. The intention o issuing the bonds is to raise a total
o $12,000,000 or the nancing o around 1,800 hectares o Guadua Bamboo plantation across Central
America. The bonds will be issued by EcoPlanet Bamboo (UK) Ltd, a United Kingdom limited liability
company which is a subsidiary o EcoPlanet Group which is a limited liability company registered in
Delaware, USA. Inormation regarding EcoPlanet Group can be ound in Appendix 1.
2. Investment Security
2.1. Trustee As Bond Holder
UK Trustee, Citadel acts as Bond Holder or all Investors. Investors are provided with bond certicateso benecial interest, whilst all Bonds are held in Trust and the Trustee holds a rst charge over 100%
o the shares o EcoPlanet Bamboo II which in turn owns the entire reehold o the 900 hectare Rio
Kama Plantation in Rama, Nicaragua. For the added protection o the investors, EcoPlanet Bamboo (UK)
warrants that all revenue generated rom the Rio Kama plantation will be paid into a bank account held
by Citadel who are instructed to make payments there rom, direct to the investors. The Trustee shall only
release 25% o the revenue back to EcoPlanet Bamboo II in order or it to meet core operating expenses
incurred prior to the annual interest payment date. The remaining 75% shall be retained by Citadel to rst
cover bond holder interest beore any excess proceeds are released to EcoPlanet Bamboo II.
Part o the proceeds rom the bond issue will also be used to nance the establishment o a plantation
outside o Nicaragua. The proceeds o harvest rom this plantation shall go direct to the Company.
However, this additional revenue to the company shall be utilised to pay the bond interest in the event
that revenue rom bamboo harvests on Rio Kama is not sucient. This secondary plantation plays a
key role in mitigating the specic risks which are detailed in section 6 o this document.
2.2. Trustee Holds First Charge Over All Shares O Ecoplanet
Bamboo II As Security
EcoPlanet Group has established the Special Purpose Vehicle (SPV) EcoPlanet Bamboo II (EPB II)
to own the reehold o the 900 hectare Rio Kama plantation. EPB II is a 100% owned subsidiary o
EcoPlanet Bamboo (UK). The acquisition o the Rio Kama plantation was nalised by EPB II on the 8th
July 2011.
The Rio Kama plantation provides excellent security to investors. The property has a high planting
capacity with around 730 hectares plantable. The property is also home to naturally growing Guadua
bamboo which demonstrates the propertys prime capacity to grow this species. It is crossed by a
number o rivers and has a constant supply o water. It is anticipated that around 500 hectares o bamboo
will be planted on the property by October 2011 with the remainder to be planted in May and June 2012.
The value o the property is orecast to increase substantially over time as the bamboo matures. A
substantial element o value will be added in the rst six months through the completion o inrastructure
and the planting o the young bamboo seedlings. An independant valuation o EPBII was undertaken
in June 2011. It concluded that once all 730 hectares o Rio Kama are planted, the valuation would be
$38,927,103, rising to $105,517,850 by 2016.
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EcoPlanet Bamboo: The Bamboo Bond
2.3. Trustee Receives Income Generated
The Rio Kama plantation will generate three major sources o revenue. Between 2012 and 2015 much
o the revenue will come rom the sale o bamboo o-cuts and seedlings which can be used by other
plantation companies to grow their own bamboo. The rarity o naturally available seed sources makes
this an attractive market. It is also anticipated that carbon credits will be available and contribute to
cash fow. From 2015 mature bamboo will be harvested rom the Rio Kama plantation and sold. The
revenue rom the sale o this bamboo is the primary contributor to EcoPlanet Bamboo (UK)s capacity
to pay interest to bond holders.
All the revenue generated rom the Rio Kama Plantation shall be paid directly into a bank account held
by Citadel Trustees who are instructed to make payments there rom, direct to the investors. Only 25%
o the unds shall be accessible by EcoPlanet Bamboo II to help cover core operating expenses. The
remainder shall be retained by Citadel to pay bond interest as priority.
2.4. Trustee Due Diligence
The UK Trustee has liaised with English, United States and Nicaraguan lawyers and received thorough
due diligence on the project on behal o investors. This due diligence covers the ollowing actors;
Legal structure o the Bonds issue Land usage rights Licenses and authorizations
2.5. Trustee Company As Bond Holder
Citadel Trustees holds the bond on behal o all investors. Citadel Trustees Ltd was created in 2007 to
provide bespoke trustee and stakeholder services to developers and investor unds. With a UK oce
in Surrey and branches in Spain, India, Thailand and China, Citadel currently deals with projects with
an estimated asset value o over $ 2.5 billion.
Citadel are also authorized and regulated by the UK Financial Services Authority with the ollowing
permissions: Saeguarding and Administration o Assets and Arranging Saeguarding and Administrationo Assets. Citadel is thereby permitted to hold nancial instruments, including the type and alternative
debentures used within this investment structure.
http://www.citadeltrustees.com
3. Bond Returns
3.1. Annual Fixed Interest Return
Bond subscriptions are or a xed period o 15 years with three denominations available as shown
below. Upon subscription there are legal ees to be paid to the UK Trustee as outlined below.
Interest returns are xed at the interest rate levels shown:
Investment Total Return % Total Return (including
Principal)
$16,500 381% $79,375
$27,500 457% $153,250
$50,000 503% $301,500
The amount o interest payable in each year varies over time as can be seen in the detailed tables
below;
$50,000 Bond
Year Interest (%) Interest ($) Principal Total Returned
2012 5% $2,500 0 $2,500
2013 6% $3,000 0 $3,000
2014 7% $3,500 0 $3,500
2015 10% $5,000 0 $5,000
2016 20% $10,000 0 $10,000
2017 30% $15,000 0 $15,000
2018 40% $20,000 0 $20,000
2019 40% $20,000 0 $20,000
2020 40% $20,000 0 $20,0002021 45% $22,500 0 $22,500
2022 45% $22,500 0 $22,500
2023 50% $25,000 0 $25,000
2024 55% $27,500 0 $27,500
2025 55% $27,500 0 $27,500
2026 55% $27,500 $50,000 $77,500
Totals 503% $251,500 $50,000 $301,500
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EcoPlanet Bamboo: The Bamboo Bond
$27,500 Bond
Year Interest (%) Interest ($) Principal Total Returned
2012 4.55% $1,250 0 $1,250
2013 5.45% $1,500 0 $1,500
2014 6.36% $1,750 0 $1,7502015 9.09% $2,500 0 $2,500
2016 18.18% $5,000 0 $5,000
2017 27.27% $7,500 0 $7,500
2018 36.36% $10,000 0 $10,000
2019 36.36% $10,000 0 $10,000
2020 36.36% $10,000 0 $10,000
2021 40.91% $11,250 0 $11,250
2022 40.91% $11,250 0 $11,250
2023 45.45% $12,500 0 $12,500
2024 50% $13,750 0 $13,750
2025 50% $13,750 0 $13,750
2026 50% $13,750 $27,500 $41,250
Totals 457% $125,750 $27,500 $153,250
$16,500 Bond
Year Interest (%) Interest ($) Principal Total Returned
2012 3.79% $625 0 $625
2013 4.55% $750 0 $750
2014 5.3% $875 0 $8752015 7.58% $1,250 0 $1,250
2016 15.15% $2,500 0 $2,500
2017 22.73% $3,750 0 $3,750
2018 30.3% $5,000 0 $5,000
2019 30.3% $5,000 0 $5,000
2020 30.3% $5,000 0 $5,000
2021 34.09% $5,625 0 $5,625
2022 34.09% $5,625 0 $5,625
2023 37.88% $6,250 0 $6,250
2024 41.67% $6,875 0 $6,875
2025 41.67% $6,875 0 $6,875
2026 41.67% $6,875 $16,500 $23,375
Totals 381% $62,875 $16,500 $79,375
Interest is paid annually by the Bond Holder (UK Trustee) to the Investor, and the income shown above
is the gross income to the Investor as the calculations do not take into account ees payable to the UK
Trustee as detailed in 4.2 below or any personal tax that the investor may be required to pay. However,
or UK tax payers the company is obligated to deduct the basic tax rate o 20% rom the interest
payments. Non UK tax payers can obtain a orm rom HMRC to exempt them rom such a deduction.
3.2. 15 Year Bond Redemption
The commencement date o the bond is 1st October 2011 with interest accruing rom that date
onwards. Upon bond redemption on October 1st 2026 the Bond Issuer will be required to repay the
Principal Sum loaned i.e. 100% o the original investment.
Investors can sell their benecial interest to a third party at any time during the term.
Young bamboo
plants in the
EcoPlanet Nursery.
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EcoPlanet Bamboo: The Bamboo Bond
4. How To Invest
4.1. Bond Subscription Procedure
You may choose between the $16,500, the $27,500 or the $50,000 bond, or any multiples thereo and
then complete, sign and return the Reservation Application Form to your sales consultant and make
the agreed Reservation Payment to the Trustee.
You will then be required to sign a Bond Purchase Agreement.
Once you have signed and completed the necessary nancial transer o the remainder o your
investment and Trustee ees (along with a certied copy o the passport photo page and utility bill
as per standard International Money Laundering regulations) and the Trustee is in receipt o your
unds and paperwork, the Trustee will issue a Bond Certicate o Benecial Interest or the Bond
including a Declaration o Trust to conrm that it is holding a Bond in trust or your benet. You will
then receive your rst Bond interest payment on 1st October 2012 and ollowing interest payments on
the anniversary o this date.
In the event o a late subscription ater the 1st October 2011, the rst years interest shall be pro-rateddownwards according to the number o days delay.
4.2. Trustee Fees
All investor unds will be held in a client account and not released until the release criteria outlined in
the Bond Purchase Agreement are met and you are issued with a Bond certicate o benecial interest.
For their ull Trust Management Service the Investor pays the initial Trustee Fee o 1.5% and each year
thereater trustee ees are payable rom returns on the ollowing basis;
Year 1:1% o the invested amount
Year 2: 1.25% o the invested amount
Year 3: 1.5% o the invested amount
Year 4: 1.75% o the invested amount
Years 5-15: 2.2% o the invested amount.
These ees are payable in consideration o Citadel undertaking various responsibilities including:
Liaising with the United States and Nicaraguan lawyers to receive due diligence on the land and licenses; Preparation o documentation in relation to the Bonds; Holding the monies received rom all Bond Investors in the client account; Evidencing the Investment by issuing a Bond Certicate o Benecial Interest to investors; Holding the rst charge over the shares in EcoPlanet Bamboo II in Trust; Receiving unds (less any applicable taxes) derived rom the bamboo harvests on the Rio Kama arm. Receipt and distribution o Bond Interest due to Investors as per their Bond Purchase Agreement; Releasing the charge over the shares in EcoPlanet Bamboo II back to the developer once the
Bond Purchase Agreements are concluded (subject to the terms o the Bond Purchase Agreement);
Transerring bond Certicates o Benecial Interest as requested rom time to time by the Investor
4.3. Exit Via Bond Redemption
The Bond has a xed redemption date o 1st October 2026 and can not be redeemed beore that time.
However, investors are ree to sell on or transer their interest to a third party and whatever price may
be mutually determined and at the investors own discretion.
4.4. Tax
Investors have the responsibility or their own personal tax liabilities. The developer is using the
services o an international tax consultant to ensure that the tax liabilities o the companies involved
in the structure o this project are as ecient as possible, with the aim o ensuring that income into
EcoPlanet Bamboo (UK) Ltd is sucient to meet Bond interest and redemptions payments.
Basic rate UK tax at the prevailing rate (currently 20%) shall be deducted at source. However, non-UK
tax payers may requests a certicate o exemption which will allow the payment o interest gross. All
tax lings and personal tax payments beyond this shall be the responsibility o the investor.
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EcoPlanet Bamboo: The Bamboo Bond
5. The Bamboo Bond
5.1. Investing In Bamboo
In times o growing awareness o decreasing natural resources Bamboo has received increased
attention. The astest growing land plant in the world with good mechanical properties, it is considered
as a promising resource or sustainable development. In act Guadua bamboo has a higher tensile
strength than steel, hence the nick name vegetable steel.
Bamboo is an extremely ast growing plant, with some species obtaining growth surges o 100cm per
day. Most bamboo species grow to their ull height within a single growing season. Over the ollowing
seasons the walls o each culm (or stem) dry and harden, reaching maturity within 3 to 5 years. Another
peculiarity o bamboo is that most species fower only very inrequently, with intervals as long as 60
to 120 years. These species exhibit what is called mass fowering where all plants in the population
fower at the same time.
Bamboo is almost unique in many other ways too;
It grows rapidly and this rapid replacement makes it the most sustainable orm o hard wood onthe planet
It tolerates a poor soil which makes it perect as a plant or reorestation o degraded areas. It releases 35% more oxygen than equivalent areas o trees It is one o the best plants or carbon sequestration, removing over 500 tons o CO2 rom the air
per hectare over 15 years
It has 5,000 recognised uses rom ood to clothing to engineering, making it one o the mostversatile materials known to man
(Sources: CATiE 2001 / 2004, Montagnini 2011 and Camargo Garcia 2006)
Guadua bamboo was chosen as it is quite simply, one o the strongest, most versatile and valuable
orms o Bamboo in the world. The reason or that is simple: no other natural resource possesses its
unique array o characteristics.
Bamboos demand around the World is well established and rapidly growing. It can be used in myriad
ways ranging rom little processed culm based products to newly developed industrial products.
Increasingly it is also rapidly becoming a replacement material or traditional tropical hardwoods due
to its greener credentials and rapid growth rate. Modern uses include:
Unprocessed use in building materials rom canes to reinorced concrete Engineered construction uses such as veneer and fooring Pulp and paper Furniture Textiles Cosmetics Biomass and uel Medicine Bamboo charcoal as air purier and other anti-pollution uses
With this unique blend o desirable properties and environmental value, it is no exaggeration to say
that bamboo is the material o the uture!
5.2. Forestry As An Asset Class
A Hedge Against Infation and a Long Term Store o Value
The global timber trade has been around or hundreds o years and there is a long history o increasing
demand and rising prices. Trees grow, unlike other commodities, and so their volume increases over
time. This means that the opportunity or growth is two pronged. There is the opportunity that value per
unit o timber will increase over time, but there is always the certainty that the asset will grow biologically.
As a primary commodity, the value o timber rises with infation and so it can be a particularly good store
o value in infationary times. Widespread and growing demand also means that timber has a long history
o price growth. According to Smart Money Magazine (Nov 2001) ...real prices or timber have steadily
risen or more than 100 years - better perormance than any other commodity... and Moneyweek (July
7th 2006) Over the past century the price o wood has averaged an annual increase o 6%.
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This steady historical growth in value has meant that investment returns rom timber have typically
outperormed many other orms o investment. Indeed, according to the Economist (Feb 5th 2008)
Average returns on timber....have outstripped those rom leading global stock indices, property, oil
and gold or the past decade.
Whilst orestry as an investment is airly new to many people, it has long been a core component o
institutional portolios. The act that you read a lot about orestry today is nothing to do with treessuddenly becoming a good investment, rather it is due to innovation in orestry nancing making the
asset accessible or ordinary investors. Indeed, this is part o EcoPlanets mission; to utilise innovative
structures to make orestry investment accessible to retail investors.
Increasing Global Demand Set Against Dwindling Supply
Global demand or timber has multiplied around 25 times in the last 40 years and this trend o growing
demand continues (United Nations Food and Agriculture Organization UNFAO). The UNFAO also
predicts that world consumption o industrial wood will rise by 60% over the next 25 years. Set against
this increasing demand the supply o timber sources is dwindling. Today, around 30% o the global
timber trade is thought to be illegal with another 40% coming rom unsustainable sources (UN FAO).
As the world brings an end to illegal logging, and the protection o natural orests becomes greater, the
price o timber rom sustainable sources will rise.
Environmentally Sustainable
Sustainable orestry can help slow the rate o deorestation around the world by providing a stable
source o timber and thereore reducing the pressure on natural orests. Furthermore, growing new
plantations on degraded or deorested land actively sequesters carbon dioxide rom the atmosphere.
Sustainable orestry, done properly, can thereore help reverse the potentially devastating eects o
global climate change.
5.3. Why Chose Bamboo Over Other Forestry Investments?
Highest Productivity
Bamboo is the astest growing land plant in the world. Whereas a hardwood tree might take 20 years
to grow to a harvestable size, bamboo can grow to its ull height within a year. Cutting a tree or timber
kills the tree, but as bamboo is a grass, cutting it down simply stimulates urther growth.
The high growth rate o bamboo means that during its lietime it produces a ar greater volume o
usable timber than traditional hardwoods.
Unique, Desirable Qualities
Guadua bamboo in particular oers some unique qualities. It has a higher tensile strength than steel
and so is particularly useul in construction. In some places the steel in reinorced concrete is replaced
with bamboo because o its strength and seismic resistance. The unique linear bre patterns in bamboo
also mean that bamboo paper can be o a higher quality with a higher tear resistance than traditionally
manuactured paper. These bres also mean sot, comortable clothing can be woven rom bamboo.
Particularly or uses associated with aesthetic nishes, bamboo oers greater strength, resistance,
thermal tolerance and sheen than other timber options. Despite its strength, bamboo, in its raw orm,
is extremely light and ar easier, cheaper and uel ecient to transport than other timbers.
Increasing Global Demand
Demand or timber in general is growing, but demand or certied sustainable timber is growing aster.
As the most sustainable orm o timber available, bamboo is set to see a surge in demand. Equally,
virtually anything that can be made with a traditional hardwood can be made with bamboo, and usually
to a higher quality. Relatively recent technologies mean that bamboo can be used or everything rom
raw culms, to fooring (e.g. Ikea), veneer (e.g. Pli Design), clothing (e.g. Jonano), medicine (Chinese
and increasingly Western), ood (shoots) and cosmetics (e.g. Nivea). This combination o material
quality, diversity o applications and sustainability make bamboo uniquely positioned to supply the
Worlds sustainable timber needs.
The Greatest Positive Environmental Impact
When used or long term wood products, due to the extremely ast rate o growth, a bamboo plantation
can sequester multiple times the carbon dioxide o a traditional ast plantation, as well as having
numerous other ecosystem benets. The act that it produces so much wood also means that less land
is required under plantation to satisy the same market demands. On a local basis, bamboos dense
network o roots provides exceptional soil stability as well as helping to re-establish depleted water
tables. It can grow on degraded land that would be un-viable or other uses and actively rehabilitate
the local environment and ecosystem. As a result it is likely that, over time, bamboo will continue to
take market share rom other orms o timber.
Wild Guadua
Bamboo on the Rio
Kama plantation.
This plant has
over 50 culms;
three times more
than the volume
o production
assumed by
EcoPlanet.
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5.4. Ensuring The Maximum Returns From The Bamboo
Maintaining the Plantation
Proper maintenance o our plantation is an important aspect. This includes planting regimes, monitoring
survival rates and replanting, weeding and general care and maintenance. Our plantation management
plan and operating procedures are available or investors to view at the plantation oce, whilst thebelow provides an overview.
Upon transplanting rom our nursery, mulching around seedlings minimizes stress by reducing
evaporation rom the soil. Spot weeding around each seedling occurs within the early years to avoid
competition and maximize survival and subsequent growth rates.
Within the rst year, survival is assessed regularly, and seedlings replaced where needed. Such
replanting is done simultaneously with the weeding schedule, ensuring ull capacity per hectare within
the rst year.
Young bamboo shoots are palatable to many animals, and so our plantations are actively protected.
Fences are in place around the perimeters and access to the plantation controlled by security gates,
ensuring the absence o cattle or other grazing animals.
Once the clump is established, annual weeding and hoeing occurs in line with the seasons, with thesoil being heaped around the base o the clump to acilitate shoot production. Clearing o overhanging,
thin or broken culms occurs to maximize growth o those culms that are commercially viable and to
create a clump consisting o clean, ree standing culms.
Due to the wet, tropical climate re is an unlikely threat. However, in line with our re management
plan, precautions are in place. These include rebreaks at regular intervals within the sections o the
plantation, and the regular clearing o all dead scrub.
Harvesting and Processing
Although Guadua can grow to its maximum height within the rst year, a urther 3-4 years are necessary
or it to mature and reach a density suitable or harvesting and commercial use. The age o the bamboo
at harvesting is important. I cut too young the culms do not have the necessary density and thereore
structural properties to be used in the high value markets or which they are grown.
However, during the early years, shoots taken rom the growing culms can be propagated and sold
through our nursery, enabling us to generate revenue and meet bond interest payments during the rst
3 yrs ater planting.
Once mature and ready or harvest, the use o selective harvesting o culms within each clump is critical
to ensure the process drives the continuous promulgation o urther culms. The timing o harvesting is
critical to ensure maximum value o the culms. We harvest mature culms during the dry season when
moisture and sugar content is at its lowest. This reduces the likelihood o insect attack and reduces
the need or chemical pesticides, as well as reducing the propensity to split during the drying process.
Once harvested, drying o the bamboo occurs. Depending on the age and season, each culm maycontain water up to 150% o its dry mass. Drying the bamboo is thereore critical and takes longer than
it would or other woods o similar density. To avoid cracking and maintain the structural properties o
the bamboo, the drying process rst cures the bamboo by inusing it with preservatives and removing
the sap. This aids the drying process and protects the bamboo rom uture attack by insects beore it
is processed. The bamboo then enters a protected air drying environment where it remains or a 6-12
week period.
The nal step in the process is nontoxic umigation, which is required prior to export. At this point
the bamboo poles are ready or transportation to their nal market; typically the USA where they are
processed and used in a wide variety o end products.
5.5. Underlying Assumptions
The company has calculated the amount o interest it is able to pay bond holders on the basis o
conservative assumptions about the value o the bamboo it can grow. Calculating this value is a simple
unction o the volume o bamboo that can be grown on a per unit basis (per hectare in this case) and
the value o that bamboo in the market place.
In considering the volume o bamboo that can be grown and harvested, EcoPlanet Group has relied
upon the experience o its in house agronomists and an independent analysis undertaken by Dr. F.
Montagnini, Proessor in the Practice o Tropical Forestry at Yale University School o Forestry and
Environmental Studies. This report is available separately or review.
Separately the company has examined the value o Guadua bamboo in the market place in order to
determine its likely value post harvest. The market price assumptions contained within EcoPlanet
Groups business model are based upon a discounting approach rom prices readily available in the
market today. This Bamboo Market Analysis is also available separately.
This data or both volume o productivity and bamboo market value is also shown in summary below.
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EcoPlanet Bamboo: The Bamboo Bond
5.5.1. Calculating The Volume O Production
The ormula or calculating the volume o production is as ollows;
Number o bamboo plants per hectare: 400
Number o mature culms per plant per year: 13
Harvested culms (average) per year: 6.5
Length o culm (metres): 15
Total quantity o production per h.a per year in metres: 39,000
Maximum productivity occurs at a plantation spacing o 400 plants per hectare. At this spacing, it is
possible based upon observations o wild Guadua that, with the right management, each plant could
yield as many as 62 culms per year. However, our gures are based upon a conservative 13 culms per
plant. For the purpose o sustainability, it is assumed that only 50% o the culms are harvested each
year, giving an annual harvest o 6.5 culms per plant. The nal part o the assumption is that each culm
produces 15 metres o harvestable bamboo. However, Guadua bamboo can regularly be seen growing
up to 25 or 30m tall.
5.5.2. The Market Price O Bamboo
The company nancials are based upon an assumed sales price o $1.35 per linear metre o bamboo.
This gure has been derived rom market research o the main Guadua bamboo producers in Central
America, but with a major discount applied or the sake o conservatism and the long term nature o the
price orecasts.
The table below shows how Guadua Bamboo is currently priced by the main local providers;
Diameter
(inches)
Bambuver Kool
Bamboo
Bamboo
Costa Rica
Ecobamboo Market
Average
Source: email quote
bambuver.com
Source:
koolbamboo.com
Source: email quote
bamboocostarica.com
Source: email quote
ecobamboo.com.ar
2-3 $2.44 $3.81 $1.84 $1.60 $2.42
3-4 $2.88 $4.06 $2.59 $2.40 $2.98
4-5 $4.44 $3.25 $3.20 $3.63
5-6 $4.50 $4.00 $4.25
6-7 $6.33 $4.80 $5.57
7 $8.14 $5.60 $6.87
Average $2.66 $4.10 $4.44 $3.60 $4.29
As the above table shows, the price per metre o bamboo currently ranges rom $1.60 per metre or
the very thinnest culms to $8.14 to the very thickest culms with and whole market average being $4.29
per metre. This is set against an assumed price o $1.35 per metre as a basis o EcoPlanet Groups
business model.
5.5.3. Operating Costs
Multiplying the $1.35 per linear metre arm gate (beore transport cost) price o the bamboo by total
productivity gives the gross annual orecast revenue. For the Rio Kama arm this totals to a orecast
$52,650 per hectare at peak productivity. The model allows or a substantial deduction to cover harvest
costs rom this revenue. Harvest cost per culm (each 15m o bamboo) is orecast at $1.46 in year our
rising to $4.18 by year 15 to allow or infation. This harvest cost is made up rom the cost o extraction
(cutting the culms and moving to the processing acility) and simple processing (removing sap and
drying). Both processes are simple and the costs are easy to orecast. The Company eels that these
allowances are generous and more than sucient to cover the actual costs.
In addition the company will incur ongoing plantation management costs as well as overhead
administration costs. The largest costs are incurred in the planting and start up phase where there is
substantial investment in the acquisition o bamboo seeds, nursery care, outplanting, inrastructure
development and capital equipment. Seedlings, nursery costs and outplanting costs add to $602.42
per hectare. The company can be condent in these numbers rom its experience o planting the
nearby Rio Sequia Plantation in early 2011.
The company has prepared a ull and detailed business plan or the 15 year term o the bonds which
has been reviewed by Citadel Trustees and an independent orestry valuer and nancial expert. The
plan takes accounts o all the cost actors reerred to above. In summary, the plan is based upon
conservative gures derived rom independent sources and actual inormation and provides the
company with a substantial prot margin over and above the cost o bond interest and the repayment
o principal.
Planting bamboo
seedlings at the
nursery where they
will stay or around
three months
beore out-planting.
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6. Risk Assessment
6.1. Risk Assement By Category
Investors in this bond ace a number o underlying risks which could aect the companys income and
thereore its capacity to pay the interest and principal. These risks t broadly into ve categories, each
o which is discussed below.
6.1.1. Risk O Failed Or Reduced Productivity
A key area o risk is that the company is not able to grow as much bamboo as orecast in order to
generate the revenue necessary to meet the interest payments described herein. The report rom Yale
University shows that, under ordinary circumstances, the company will be able to grow as much bamboo
as it orecasts. In addition, EcoPlanet Bamboo (UK) will also utilize some o the proceeds o the bond
issue to plant an additional 700 hectares o bamboo outside o Nicaragua in order to provide both
substantial additional bamboo crop as well as a principal orm o risk mitigation against localized risks.
However, there are a number o other risks to productivity.
6.1.1.1. Fire
The risk o re in the wet tropics is low because o the high rainall and constant humidity; however or
many species re can be devastating when it does occur. Bamboo is a re resistant plant because o
its high moisture content and tends to survive re outbreaks well, although some damage to smaller
culms can occur.
Despite the low re risk and the natural resilience o bamboo, EcoPlanet employs a strict re
management programme with constant ground litter and dead brush clearance to remove potential
uel and the imposition o regular re breaks between the bamboo stands as well as a detailed re
management plan and sta training programme. As a result o these practices it is highly unlikely that
a re in the plantation will spread to cause signicant damage.
As an ultimate back up however, and as discussed in 6.1.1 above, the company intends to plant anequivalent area in another country, remote to Rio Kama, such that sucient bamboo remains available
to meet commitments even in the unlikely event o the destruction o Rio Kama through re.
6.1.1.2. Flood
Rio Kama is located in the wet tropics with high rainall and the plantation itsel is crossed by many
rivers. However, no signicant part o the plantation sits in a food zone or in areas prone to fooding.
The undulating nature o the site means that much o the planted area is on higher ground. Furthermore
the soil type o Rio Kama, although being predominantly clay, is well drained.
Bamboo is also highly resilient and in act tolerant to fooding. In the wild Guadua oten grows directly
on river banks due to the abundant water and survives within food zones. Rio Kama itsel has examples
o wild Guadua growing both along the banks o the rivers that cross the plantation as well as in
sporadic clumps within the more inland areas o the arm.
As an ultimate back up however, and as discussed in 6.1.1 above, the company intends to plant an
equivalent area in another country, remote to Rio Kama, such that sucient bamboo remains available
to meet commitments even in the unlikely event o the destruction o Rio Kama through fooding.
6.1.1.3. Disease And Pests
Bamboo is most susceptible to disease in the rst six months o its lie; however such risks are easily
managed through simple monitoring, treatment and rapid extraction o aected plants. The company
maintains an ample stock o seedlings in order to replace diseased plants. As the bamboo plants
reach maturity, they become resistant to both pests and disease although the company has detailed
management plans in place to deal with both threats.
EcoPlanet has a ull pest management strategy in place, both within the nursery and once seedlings
are transplanted. Within the early years the major threat comes rom rats and lea cutter ants. Within
the rst year ater planting the young seedlings are treated regularly with organic and non organic
pesticides in line with those accepted by the Forest Stewardship Council.
Once mature the greater threat comes rom wood boring insects, the threat o which can be minimized
through regular cleaning and maintenance o the bamboo clumps. EcoPlanet carries out continuous
research to develop an integrated pest management (IPM) strategy that will over time replace all non
organic chemicals with organic and where possible biological orms o control. This involves developing
a ully unctioning ecosystem with sucient biodiversity to attract natural predators including hawks
and woodpeckers.
6.1.2. Political Risk
Many emerging markets present more political risk than better establish investment destinations. The
risks o war, civil disputes, expropriation and non-convertibility o currency, amongst others, exist. The
company acts as a responsible corporate citizen within Nicaragua and reduces such risks where possible.
As an ultimate back up however, and as discussed in 6.1.1 above, the company intends to plant anequivalent area in another country such that sucient bamboo remains available to meet commitments
even in the unlikely scenario that Rio Kama becomes inaccessible, unusable or expropriated due to
political orces.
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6.1.3. Sales O Bamboo
The capacity o the company to service the bond interest and repay the principal is dependant upon
the companys ability to sell the harvested bamboo. This thereore represents a key risk.
However, the companys location in Central America provides a signicant advantage over Asian
competitors or the substantial US market. The United States is the Worlds largest importer obamboo and bamboo products and is thereore a key export target or the company. Being located in
Central America, the Company lies only three shipping days rom the United States as opposed to well
over 30 days or Asian bamboo suppliers. Likewise Nicaragua is a member o CAFTA-DR (Dominican
Republic-Central America Free Trade Agreement) which eliminates import duties between members.
This provides another advantage over other bamboo exporters that are not members o such a ree
trade agreement.
The rst major harvest remains our years away and during that period the company will increase
the scale o its bamboo sales operation. Already however the company has identied key markets
and some target customers or the bamboo. Primary markets will be fooring, panel bre board and
pulp. The company is also working on a plan to develop housing made almost entirely rom bamboo
and designed to be an aordable solution or developing economies. Partnerships are already being
discussed with major aid organizations and NGOs to advance this channel which would deliver a good
price or the bamboo whilst maximizing positive social impact.
6.1.4. Increasing Costs
Increasing costs o operation would aect the companys capacity to service the bond interest. Infation
is unpredictable in many emerging economies and must thereore be considered a key risk. However,
the companys business model has assumed substantial cost rises over the period o the bond by as
much as 10% per year.
In the event that costs rose at a higher rate, it would erode the companys prots but the company believes
that its orecast prots provide an ample buer to absorb greater than expected infation. The company
may also benet rom a rising value o bamboo beyond expectations in an infationary environment.
6.1.5. Operational Risk
In addition to other risks, there remains the risk o poor management or management errors in the
conduct o business that aect either costs or revenue, or both, and thereby aect the companys
ability to meet bond interest payments and the repayment o the principal.
The company has extensive business and plantation management experience at both an executive
and operational level. Proles o key individuals can be ound in Annexe One o this document.
Additionally, the company is committed to operating according to a strict set o processes which
have been developed within the specic context o Guadua Bamboo and the plantations we operate,
but also meet the strict guidelines o supervisory bodies such as the Forest Stewardship Council.
6.2. Worst Case Model Scenario
Whilst Investors Bond interest returns are contractually xed, a worst case scenario has been
tested in cash fows to ensure that even in the event o severe strain being put on the companys
business model, it remains able to generate the bond interest and the repayment o principal. It was
concluded that the necessary revenue can be achieved, even when considering the worst-case
scenario below;
Reduction o orecast revenue rom all sources by 25% and Increase o operating costs by 50%
6.3. Land & Asset Security
EcoPlanet Bamboo (UK) has engaged the services o a UK Trustee, Citadel Trustees Ltd, to provide
enhanced security to all bond holders and to enable the bond structure to be put in place. This will
involve the Trustee taking a charge over the shares o EcoPlanet Bamboo II which owns the reehold
o the Rio Kama plantation and receiving the income o the harvest o the bamboo on that plantation
into a client bank account beore distributing a maximum 25% o revenue back to the company and
withholding 75% to cover returns to investors.
The UK Trustee has received ull due diligence on the Land and documentation relating to the
Bamboo Bond and underlying activities o EcoPlanet Bamboo (UK). A ull valuation o the business
as a whole throughout the various stages o development has been undertaken to assess the level
o security or bond holders. In summary the valuation produced on 30 June 2011, valued the Rio
Kama plantation on a discounted cash fow (DCF) basis, and once all 730 hectares are planted at
$38,927,103.00, rising to $105,517,850 by 2016. EcoPlanet Bamboo (UK) expects planting o the
500 hectares o the Rio Kama plantation to be complete by October 2011 with the nal 230 hectares
planted by June 2012.
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6.4. Change O Law
The project has been established taking into account current Nicaraguan, US and UK legislation and
tax codes. As ar as the company is aware, no changes that would adversely aect the project are
planned. However, any changes to legislation or tax codes in any o these jurisdictions could adversely
aect the investment.
Disclaimer:
This oer o investment originates outside the United States o America and is n ot directed to citizens
or residents o the United States.
The contents o this Inormation Proposal are not intended to be, and should under no circumstances
be treated by any recipient as being, investment, tax or legal advice. All prospective investors must
make their own investigation and evaluation o a prospective investment in the project. This Investment
Proposal does not provide specic investment advice and does not represent that an investment in the
project is suitable or any specic investor.
EcoPlanet Group, EcoPlanet Bamboo (UK) and EcoPlanet Bamboo II have relied on published sources
and third parties or certain statements o act or opinion and whilst it believes that those statements
or opinions are correct it has not independently veried them. All statements o opinion contained in
this Investment Proposal, all views expressed and all projections, orecasts or statements relating
to expectation regarding uture events or possible uture perormance o the project represent an
assessment based on inormation available as at the date o this Investment Proposal and are not to
be read a guarantee or assurance that the particular events will in act come about.
Appendix One:
About Ecoplanet Group
EcoPlanet Bamboo (UK) and its subsidiary EcoPlanet Bamboo II are part o the US based EcoPlanet
Group and have been established specically or this bond oer and the operation o the Rio Kama
Plantation. The EcoPlanet Group is a unique group o companies combining cutting edge plantation
development services with proven nancial expertise. We have developed innovative new nance
mechanisms to provide capital to plantation development whilst overcoming the traditional barriers
associated with timberland investments. These barriers - long term return on investment, low investor
liquidity, separation between business and environmental aspect - have to date limited the rate at
which sustainable orestland can be developed.
EcoPlanet Group and its subsidiarys management combines over 40 years experience in successul
agribusiness across multiple continents, 22 years experience o building businesses in remote areas o
Latin America, 20 years experience managing or as duciary o over $300 million or private investors
and a 20 year history o making the world a better place through philanthropy and responsible investing.
EcoPlanet Group owns, develops and operates each o its ventures around its core values and
Company principles:
Commercial Discipline we embrace protability and growth as the lieblood o the organization Integrity we are committed to intellectual honesty, reliability and airness Impact our corporate culture is driven by our desire to create positive social and environmental
impact
Accountable and Teachable we are precise and open about goals, results, successes andailures and we advocate an environment where we learn rom those experiences, the good and
the bad
Human Dignity we believe that every human being is o equal value and given the opportunity,can lit themselves out o poverty
EcoPlanet Group already owns and operates 1200 hectares o bamboo plantations in Central America,
making it one o the largest operators in the region. Within the group there are currently over 350
employees.
The original
EcoPlanet bamboo
research centre
in Managua,
Nicaragua.
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Creating Positive Social and Environmental Change
EcoPlanet Groups mission is to maximize economic returns through the development o innovative
models and careul selection o species and markets, to create positive social and environmental
impact through integrating responsible capital, plantation development and carbon sequestration. In
this way and through continued growth, the Company aims to challenge global problems, through
positively impacting one community at a time.
EcoPlanet Group carries out social and environmental baselines prior to project initiation. The Company
is committed to monitor progress against indicators such as:
Number o jobs createdAverage annual earningsAdult literacy through training Tons o carbon dioxide sequestered Number o new trees planted Biodiversity indices GDP increase New tax revenue created or the host Country
Such progress will be monitored and quantied in conjunction with a third party verier against
internationally accepted standards. EcoPlanet Group designs all projects in line with the Climate,
Community and Biodiversity Alliance (CCBA) or validation and verication o project co-benets,
against the Veried Carbon Standard (VCS) or certication o its sellable carbon assets, and against
the Forest Stewardship Council (FSC) or sustainable orest management.
These standards allow the company demonstrate the sustainable nature o the bamboo it grows as
well as the positive environmental and social impact that it delivers. Adhering to these standards
producers a broader market or the companys bamboo as well as increasing the likelihood o receiving
carbon credits.
EcoPlanet Group
Management Team
Troy started his entrepreneurial career at 20 when he co-ounded a clothing manuacturing and retail
company, best known or its B.U.M. Equipment label. Over the next 6 years he grew the Companys
revenue rom $0 to $120 million beore selling his interest in 1992.
He then ounded The InvestLinc Group, creating a proprietary model and system to manage andoversee a unique alternative investment amily o unds or high net worth individuals, oundations
and select institutions and growing a single $5m und into a company which raised & managed over
$500m.
He later served as Foundation Vice Chairman o Legatum, a multi-billion dollar emerging market
investment company, based in Dubai as well as an early investor and board member in Waldos Dollar
Mart, a $300 million Mexican retailer. He resigned to co-ound TriLinc Global, a social impact investment
rm ocused on bringing scaleable private capital to SME entrepreneurs in developing countries with
the goal o making money as well as creating social impact, primarily through job creation.
In 2006, Troy joined the ranks o Walt Disney, Orson Welles and our U.S. Presidents when he was
selected as one o the Ten Outstanding Young Americans. The Ten Outstanding Young Americans
program (TOYA) is one o the oldest and most prestigious recognition programs in America. Annually
since 1938, The United States program has sought out the ten young men and women who bestexempliy the nest attributes o Americas youthul achievers.
Troy is an active philanthropist through the Wiseman Family Foundation and was also the co-ounder
o World Orphans which has helped und the construction o over 500 orphanages in 45 countries.
Troy WisemanCEO, Co-Founder EcoPlanet Group
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John has enjoyed a 41 year career in international agribusinesses. An agronomist by trade, John
has managed plantation operations in Central America, Arica and Asia. Johns experience in Latin
America is extensive and encompasses the management o many indigenous and commercially viable
species, as well as the oten complex process o bringing these products to market.
John ran the international agribusinesses o Gul and Western beore co-ounding NicaHoldings, a
seaood production and distribution business, which he successully managed or 14 years during
which time the Company accounted or nearly 10% o Nicaraguas total exports.
John took over as CEO o Puriscal, a tobacco production Company established in Costa Rica, where
he created a process or manuacturing and distributing hand-manuactured cigars and built a global
marketing network to allow or distribution o the companys products.
Johns business experience has led him to manage diverse teams o people, rom indigenous
communities to prominent business men. He is passionate about his native Nicaragua, where his
vision is to bring about positive change.
John is a prominent member o the Nicaraguan Business Council, a board member o the Wake Forest
University Nicaraguan Campus, and a member o the Council or the Hogar de Fe Orphanage.
John VogelPresident, EcoPlanet Plantation Management
Born and raised in Kenya, Camille developed an early interest in environmental issues and ocused her
education upon building this oundation. Starting her career in traditional conservation with Dr Richard
Leakey, she soon realized that her passion or change lay in nding the bridge between capitalism and
conservation.
Camille has lived and worked across the tropical world, developing orestry projects at both the
community and commercial levels. Her interest in the creation o innovative nancial mechanisms or
drawing private capital towards orestry initiatives led to her involvement in the early development o
global carbon markets or orest based carbon. Working with the Permanent Mission o Papua New
Guinea to the United Nations, she was involved at the international level in both the policy and project
development o REDD+ and mechanisms or Payments or Environmental Services.
Subsequently, Camille has worked in the public and private sector and has experience in the origination,
implementation and management o orestry and land use programs across Latin America, Arica and
Southeast Asia.
Camille is an expert and published author on the nancing and commercialization o sustainable
orestry initiatives and holds a BSc in Ecology rom Imperial College, London, and a Masters rom Yale
Universitys School o Forestry and Environmental Studies.
Camille RebeloExecutive Vice President, Co-Founder, EcoPlanet Group
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Anthony Colletti is a Certied Public Accountant (CPA) with teen years o experience in public accounting
& tax. Anthony began his accounting career with Wolowicki & Associates beore spending 5 years as a
Manager at American Express were he specializes in tax and business services.
In 2006 Anthony was hired away to become the CFO o O ikos Capital Management, a private amily oce
where he specialized in tax planning as well as assisted with multiple Private Equity and Real-Estate. He
also serves as the Treasurer or the Wiseman Philanthropy Fund, which ocuses on assisting in the positive
transormation o the lives o children in the United States and the developing world.
Anthony graduated with a Bachelors o Science in Accounting rom Bradley University in Peoria, Illinois,
USA and maintains his membership in the American Institute o Certied Public Accountants. In 2010 he
was nominated or Crains Chicago Businesss 40 under 40 award. Anthony is an active member in theJunior Chamber and the Lions Club and acts as Advisor to the Illinois Jaycee Charitable Foundation.
Anthony CollettiChie Financial Ocer, EcoPlanet Group
Kristena Blume joins EcoPlanet Group, LLC with an extensive knowledge o broker dealer operations
and accounting, customer relations, and human resources.
Kristena started her career with InvestLinc Group, LLC managing their broker dealer and compliance.
She successully completed FINRA and SEC audits, developed policies and procedures, and
developed a server le system or the entire oce. During this time she managed multiple registered
representatives and n ine oces across the country.
Prior to joining EcoPlanet Group Kristena developed the human resource policies and procedures or
TriLinc Global, LLC; while also developing their investor database system.
Kristena Blume holds a Bachelor o Science in Business Finance rom University o Phoenix.
Kristena BlumeProgram Manager, EcoPlanet Group
David acquired a BSc in Environmental Management in Bris tol, UK beore moving on to complete an MSc
in Development Administration and Planning with a specialism in the impact o business activity upon
measures o human development in emerging countries. David continued his research in this area at the
National University o Singapore beore moving back to the United Kingdom and beginning a career in
Management Consultancy.
Over 5 years David moved rom a Business Analyst to Principal Consultant working in areas as diverse
as Business Process Outsourcing, Strategy and Procurement. During this time David worked with clients
such as Accenture, British Telecom, the Ministry o Deence and Microsot.
In 2004 David co-ounded Property Frontiers, a company specialising in emerging market real estate
investment opportunities. As the global economy went through the upheaval o the credit crunch, PropertyFrontiers expanded its ocus outside o emerging markets and ound exciting value opportunities or its
clients in North America and Europe growing to one o the leading Property Investment brokers in the
market place. David also used his extensive property experience and economics background to write a
leading book series entitled Where to Buy Property Abroad: An Investors Guide.
David also played a key role in helping the UKs international property industry develop standards o ethics
and consumer service by serving on the ounding committee o the Association o Overseas Property
Proessionals (AIPP). Property Frontiers remains a Founding Member o the AIPP and has representation
on the AIPP board.
David co-ounded the Bacolet Bay Resort Development Company to construct a 240 room, 5 star hotel
in Grenada, Caribbean. David serves as an adviser to the company which has successully navigated the
challenges o the credit crunch and proceeds to complete the project.
In 2009 David was presented the opportunity to combine his investment expertise with his background
in Environmental Management when Property Frontiers acquired Eco Investments Ltd, a company
specialising in the sale o investments in orestry, agriculture and alternative energy. Under the umbrella o
Property Frontiers, Eco Investments fourished to become a leading player in this newly emerging industry.
In 2010 the Company was divested to EcoPlanet Group, o which David is Co-Founder and President.
David CoxPresident, Co-Founder, EcoPlanet Group
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Originally rom Leon on the Pacic coast o Nicaragua, Orlando has an Agronomy degree rom the
Zamorano Pan-American Agricultural School, a private and renowned international University in
Honduras.
Upon graduating Orlando returned to Nicaragua and spent 15 yrs working within the Ministry
o Agriculture ocusing on plant production and horticulture. The Ministry awarded him with two
scholarships or his work, each lasting a period o two years, and providing exposure to international
and cutting edge horticultural techniques. The rst sent him to CATIE (the Training and Research
Centre or Tropical Agronomy) in Costa Rica where he studied coee and cacao production. The
second scholarship sent Orlando to the University o Puerto Rico, where he studied phytotechnology,
specializing in commercial ruit production.
Following his time at the Ministry, Orlando moved to the National Bank o Nicaragua where he spent
seven years working on the design and implementation o large scale irrigation projects. During this
time he spent extended periods o time in Israel studying innovative new irrigation systems.
Orlando let the bank and began to develop his own 80ha arm or production o coee, cacao and ruit.
However, shortly aterwards the Sandanista revolution occurred and Orlando let Nicaragua and spent
his time split between the United States and Guatemala, working or a series o private companies on
plant production and nursery development.
In 1994 Orlando returned to Nicaragua and has since worked with EcoPlanet Bamboo President, John
Vogel, developing a series o nurseries or projects across Nicaragua.
Orlando Cuevas MonjeHead o Nursery Operations, EcoPlanet Plantation Management
Colindres grew up raising cattle on his 80ha amily arm, about 10km rom EcoPlanet Bamboos Rio
Siquia Farm. He developed an entrepreneurial spirit at the early age o 14, when his athers death let
him with the considerable responsibilities o ensuring the arms prosperity.
This responsibility triggered in him a concern over cattle raising in the Rama area, where traditional
arming techniques ensure the land is completely cleared o all tree cover. During his ormative years,
Colindres noticed the micro-climate on his amily arm changing - becoming hotter and drier, with
markedly less and more sporadic annual rainall. These concerns led him to study arm production
systems at the Christian University o Nicaragua, and urther developed his interest in the potential to
reverse land degradation through moving away rom traditional arming and towards agroorestry and
silvo-pastoral systems.
Colindres ocused his studies on practical work, including a number o intensive workshops involving
trips around the region to consider model arm systems. He committed himsel to developing models
that could include the re-initiation and development o trees on arms that were traditionally completely
deorested. He acquired indigenous seed and seedlings rom the Nicaragua Institute o Agro Technology
and used them to increase orest cover on his amily arm. He combined these with the cultivation o
odder plants and experiments in to agroorestry with cacao, and used his thesis to prove that such
integration, contradictory to local belies, results in higher milk yields and cattle productivity, as well as
stabilizing micro-climates.
Colindres holds a 5yr Agro-Engineering degree. He hopes through his work with EcoPlanet Bamboo
to build his leadership qualities and ulll his dreams o reversing the current trend o land degradation
in his home province.
Rene Alonso ColindresAgronomist, EcoPlanet Plantation Management
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Born in Chontales province, Chanito moved to Rama at an early age, to own and run a small scale
cattle arm adjacent to Rio Siquia Farm. He is attached and committed to the land; however, his
capacity and experience extend ar beyond his smallholder liestyle.
Chanito graduated high school and earned himsel an Associates Degree in arm production systems
at INATEC, the Nicaraguan National Institute o Technology. On returning to Rama, he started to
volunteer and later collaborate with FADCANIC (Foundation or the Autonomy and Development o
the Atlantic coast o Nicaragua), and through this interaction trained himsel on issues such as gender
equality, sustainable land management and agroorestry.
Chanito believes that the law oten overlooks the rights o local and indigenous people, who are oten
let with no voice or control over their own resources. In order to be able to enact change and acquirethe best outcomes or his community he is putting himsel through law school, which he attends in
Rama town on Saturdays. He is aware however, that book learning must be combined with practical
experience, which he acquires through his role with FADANIC and as President or the local council or
Calderon, the community adjacent to EcoPlanet Bamboos Rio Siquia Farm.
Chanito has watched the community o Calderon develop over the past 2-3yrs in to 12 amilies or
approximately 60 people. His concerns over the adequate availability o drinking water to support this
community drove him to put together a successul proposal through FADANIC to Norwegian Aid or
the development o a community well, which has been ully realized.
Chanito also has the communitys rst biodigester that converts his cow manure in to cooking uel. He
uses it as a demo project or the neighbouring amilies, showing them not only the ongoing cost savings
rom uel purchase, but also the health benets o avoidance o smoke inhalation within his home.
Chanitos vision is to improve local schools so that every child receives a good education and to
ensure that adequate sanitation becomes available to his community. He is driven to represent, take
care o them and protect his community and believes that EcoPlanet Bamboo can play an integral role
in achieving those goals.
Feliciano Sequeira CentenoPlantation Systems Supervisor, EcoPlanet Plantation Management
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