BIOMASS Investments


BMI will issue 3 year non transferable corporate bonds to suitably qualified investors via their IFA. BMI will advance the proceeds of the bond issue in the form of a loan to the borrowing company, Agrofarm London Limited (‘All’), an English company. ALL will use the sums lent to it to fire up and run initially up to 9 biomass plants located throughout Italy through the purchasing of suitable feedstock, contacted via its subsidiary Agrofarm International AG. The remainder of the funds will be used to finance the reduction of bank debt that accumulated during the construction phase, and debt that is owed to the contractors who built the plats and the previous owners. A subsidiary of ALL, Greenworld Power SRL, that owns the 9 biomass plants will generate income by operating these plants and selling the combined heat and power to a number of blue chip clients including GSE a 100% subsidiary of ENEL (the Italian Stage Utility). The income made through the sale of heat and power will be more than sufficient for ALL to repay the interest on the loan and will allow the loan to the fully repaid which will in turn repay the bon interest and repay the bond investment monies. The supply of the feedstock, being vegetable oils (cotton seed and alternatives) and the price of the feedstock has been locked in for 10 years from April 2014.

Asset Class Held By All

Biomass Plant Machinery

Minimum Investment

£10,000 (Cumulative Amount Through Platform)

Target Fund Raise

£10,000,000

Bond term

3 Years (Which Maybe Extended To Up To 5 Years In BMI’s Discretion)Learn More »

Bond Coupon

12.5%

Interest Payment Terms Of The Bonds

The first interest payment will be made on the 6 month anniversary of the issue date of the relevant bond and there after every 3 months for the term of the bond.

Security For The Loan To All

BMI will have a English law debenture over the assets of ALL and a share charge over the shares of ALL. Current assets held by ALL and it’s 2 subsidiaries are valued at 7.4 million as at May 2014. BMI will also have a debenture over the 2 subsidiaries of ALL being Greenworld Power SRL and Agrofarm International AG.

Security For The Bonds

The bondholders will have the benefit of a debenture over the assets of BMI. BMI will grant the debenture itself to Global Custodian Services Limited (‘GMS’), as security trustee. GCS will hold the benefit of the debenture on trust, and enforce the debenture, for the benefit of the bondholders.