Mission Markets, an online platform for socially responsible investments, recently facilitated its first deal.
Planting Empowerment is particularly excited about this news because we recently launched our ForestBond 2019 product on Mission Markets' platform. The ForestBond 2019 will finance 100 hectares of mixed species timber cultivations based on PE's equitable forestry model.
The ForestBond 2019 is an eight year, zero-coupon bond with an interest rate of 8%. Because it is a zero-coupon bond, the interest earned each year will not be paid out to the investor. Rather, the interest will compound and be paid as a lump sum, plus the original capital amount at the end of the eight year period.
The ForestBond 2019 total issuance is $1 million, and will be sold in tranches of $100,000. The debt will be in addition to another $100,000 equity in co-financing for the project.
The interest rate of 8% is nearly 2% points above the emerging market bond index rate. The ForestBond 2019 also represents an attractive holding for those investors seeking portfolio diversification and a commodity increasingly in demand in China and India.
We have high expectations that the ForestBond 2019 will attract interest from socially and environmentally minded investors because of its projected return and strong social and environmental metrics.
The $1 million issuance would expand the number of hectares under PE management from 20 (22,000 trees) to 120 hectares (132,000). Our previous offerings have successfully raised nearly $150,000 from over 50 investors.
Through the financing that the ForestBond 2019 will provide, we look forward to expanding our sustainable forestry initiatives. If you are interested in learning more about the ForestBond 2019, please contact us for more information.
The ForestBond 2019 is an investment, and parties interested in the ForestBond 2019 should understand that projected returns may or may not occur. Investors should perform their own due diligence and understand that they may lose all of their investment in the ForestBond 2019.