Investing in the bamboo boom
Emerald Knight, the ethical investment specialist, has delivered its second fixed annual return of between 4.55% and 6.00%, 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%.
Emerald Knight sales manager, Ajay Kohli, says: “There’s a widely held perception that you have to sacrifice profits for principles when it comes to ethical investment, but the bamboo bond proves that this is not the case. Bamboo is helping to save the planet from the effects of climate change due to its unrivalled capacity to capture carbon, and the bamboo bond is delivering very competitive returns and performing exactly to target, giving investors the reassurance they need in today’s market.”
Bamboo is the fastest growing land plant on earth, with some species growing up to one metre a day, and can reach its full height in a single season rather than the 20 years taken for traditional timber, which can be harvested only once. Bamboo is ready to be harvested annually and sustainably after four years and can create 20 times more timber per hectare than other hard or softwoods. It doesn’t destroy the land it’s grown on and it absorbs 35 per cent more carbon dioxide than any other similar species. It’s also cheap to cultivate, and is incredibly strong.
Bamboo has a wide variety of applications including construction, carpentry, flooring, furniture, textiles, paper, pulp, clothing and cosmetics. It can be used as a substitute for traditional timber in virtually any product at a lower cost, higher quality and greater positive environmental impact, which is increasingly important at a time when deforestation is a big issue.
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. It represents one of the most secure investments available in a timber market where prices have risen consistently for more than 100 years. Some are now hailing it as ‘the timber of the 21st Century’.
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.
This particular bond has now sold out, but another bamboo investment with attractive projected returns is now available through Emerald Knight.