Natural Capital 9.75% Corporate Bond, England, United Kingdom

REASON TO INVEST - INTRODUCTION

For too long, investments have focused solely on financial benefits, without consideration for the residual damage to the environment or their implications to the cause of social injustice. This is no longer sustainable.

The Bond offering gives equal consideration to environmental protection, direct social benefits and sustainable financial benefits.

This unique offering gives the investor a sense of pride and accomplishment as well as an exciting financial return on investment. An investment that is ideally suited to:

Investors who want a decent financial return in the era of low interest rates – hence looking at alternative investments

Investors who want the added-value of investing in a positive social and environmental product

Investors who want the security of a corporate bond that is asset-backed with discounted asset calculations

Investors who are happy with annual interest payments and a 3 year commitment

If this sounds like you, then welcome to the Capital Wealth 3 year Secured Bond.

SUMMARY OF FEATURES

Suitable only for High Net Worth, Sophisticated and Professional Investors

Capital Bond

3 year Asset-Backed Corporate Bond

Bank Guaranteed

9.75% Annual Interest

Interest Paid Annually

Certified Environmental Benefits

Certified Social Impact Benefits

Summer/Autumn 2013

A PROBLEM FOR US ALL

Wherever we live on the planet, we are all affected by the negative effects of climate change. Extreme weather conditions, increases in atmospheric related illnesses, depletion of the world’s  resources, water shortages leading to conflict, the list is endless. Although for the last 20 years, the focus has been on carbon emissions leading to pollution, a little-known or talked about threat to our environment. In a recent report by the UNbacked TEEB for Business Coalition, the cost of the loss was estimated to be US$4.7 trillion per year.

WHAT IS NATURAL CAPITAL?

Natural capital is the sum total of the world’s natural resources, provided by the earth’s ecosystems; the natural stock of the world. These natural assets include the soil, forests, water and biodiversity that are within these ecosystems and are vital to all human and economic activity.

While organisations throughout the world are being encouraged, and in some cases legislated, to reduce the amount of carbon that they release into the atmosphere, there is a groundswell of opinion that they should also reduce their pressure on the earth’s natural capital. Where organisations cannot reduce, they are being actively encouraged to balance emissions and usage through offsetting and protection.

One of the main drivers of both carbon pollution and the loss of natural napital is deforestation. Forests, in their purest form, are carbon pools, absorbing carbon from the atmosphere, and are fundamental to maintaining a natural balance; they are also essential to the development and sustainability of biodiversity.

“25% of Western pharmaceuticals are derived from rainforest ingredients”

The destruction of natural forests not only accounts for approximately 18% of global greenhouse gas emissions, higher than the entire global transportation sector, but also results in the forests no longer existing to fulfil their role of absorbing dangerous carbon from the atmosphere. The destruction of rainforests similarly has a devastating effect on the ecosystems within them, resulting in important plant and animal life ceasing to exist.

THE SOLUTION

The Trocano Araretama Conservation project is a unique pilot project in the Amazonia region of Brazil with 3 core goals; to reduce deforestation, to protect and to provide much needed social benefits such as education, healthcare and livelihood enhancements.

The Trocano project is the result of a Municipal and private enterprise partnership, and has been in development for the last 3 years. The project has been developed using the natural Forest Standard guidelines and has been closely followed and encouraged by Governmental, Corporate and NGO stakeholders and acknowledged as a positive advancement in the fight to avoid deforestation and loss of habitat.

The project’s main objective is to monitor and avoid deforestation through the use of satellite imagery from NASA, PRODES, ESA, and RapidEye, which are enhanced by on the ground patrols, community participation and regular aerial observation flyovers. The project also monitors and enhances biodiversity, combining local knowledge with scientific knowhow to collate data on important species of flora and fauna present in the project area.

Of the 105 communities present in the project area, only 9 have adequate supply of electricity; one of the goals of the project will be to supply sufficient power through solar, biomass and biogas generators, to provide safe drinking water and the basic electricity needs of the communities. Due to the remoteness of many communities, 18 educational zones are being developed by the Municipality. The project will enhance these efforts by providing computers, educational materials, and transport for these centres.

The project process is strictly designed and developed according to the Natural Forest Standard (NFS) requirements. In order to achieve certification, the project has to go through a rigorous process of third-party, independent validation and verification, to certify the projects adherence and conformance to the NFS requirements. Upon successful completion of these stages, the result of this process is the issuance of Natural Capital Credits (NCC); an all-encompassing solution to the 3 main environmental impact issues concerning companies worldwide, as they combine carbon, social and biodiversity values.

EXIT - CAPITAL WEALTHS FINANCIAL MODEL

Purchase of credits/options contracts

In February 2013, we carried out a full internal review of the Trocano Araretama Conservations Project Design Document (PDD). The PDD is the core document of the project, detailing all required data, information and documentation necessary to be submitted for inspection to gain independent third-party validation.

Following a successful appraisal of the documentation, we signed an option agreement with Celestial Green Ventures, securing a beneficial price per NCC.

At the end of March 2013, the Trocano Araretama Conservation Project successfully achieved independent validation, carried out by Environmental Services Inc. The validation process forms the first important stage towards the issuance of NCC’s, and provides assurance to NCW that the project conforms to the requirements of the governing Standard, and also the ethical requirements of NCW.

INVESTOR SECURITY

There is a secured a Bank Guarantee with a face value of 25 million Euro. The Bank Guarantee has one purpose, to underwrite and secure the bond holders in the event of the company defaulting on the return of the client capital. In the event of this happening, Highgrove Securities will make available the guarantee for monetisation to repay back the bond holders.