The Bamboo Bond IP 08 July 2011

8/3/2019 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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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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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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$27,500 Bond


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


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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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



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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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%.


8/18EcoPlanet Bamboo: The Bamboo Bond

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.


9/18EcoPlanet Bamboo: The Bamboo Bond

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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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.


11/18


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


15/18


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


17/18


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


18/18


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

The Bamboo Bond IP 08 July 2011

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