Bamboo bond delivering returns, says Emerald Knight
Ethical investors are being targeted by Emerald Knight, which has just reported a second annual return of up to 6% for investors in its 15 year bond invested in bamboo plantations in Central America.
The bond has an investment period of 15 years, with returns intended to benefit from the rapid growth potential of this type of wood. Some $12m was raised at the time of the issue, with investors offered denominations of $16,500, $27,000 or $50,000.
Emerald Knight said that with some species of the wood growing up to a metre per day, it enables harvesting annually instead of once ever two decades for traditional timber. This growth means that it can create 20x more timber per hectare than other hard or softwoods, as well as absorbing more carbon dioxide, the manager said.
The global bamboo market is estimated at $10bn, but the forecast of the World Bamboo Organisation is that it could double in the next five years.