Money Talks Vol 5 Issue 1
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Transcript of Money Talks Vol 5 Issue 1
I N S I D E T H I S
I S S U E :
Mustard Seed 2
Green Pastures 2
Stockport Hydro 2
The Cochabamba
Project takes Credit
3
The Cochabamba
Project Share Offer
3
The Cochabamba
Project Loan Stock
3
HAFTrust and The
CCBS.
4
spondency and renewed
market uncertainties,
fuelled by the Japanese
earthquake and resulting
nuclear threat together
with rising fuel prices and
continuing unrest in
Libya , the industrial and
provident society model is
growing into a widely
respected model for so-
cially focused investment.
We hope you will be in-
spired by one or more of
them in this issue of
Money Talks.
It is now two years since
Ethical Investments re-
nounced its authorisation
with the Financial Ser-
vices Authority in order to
concentrate on promoting
alternatives to market-
listed securities.
In that time we have seen
a change of government
and the introduction of
Mr Cameron’s grand plan
for the “Big Society”.
On the positive side it is
clear that there is a huge
amount of willing support
for the principle of com-
munities helping and
organizing themselves.
The main criticisms how-
ever are that, with the
best will in the world,
ordinary people simply do
not have the time or skills
to turn aspirations into
reality.
Even more importantly
they need capital.
The so called “Big Society
Bank” will have a mere
£300 million in its first
year—a lamentably inade-
quate amount to tackle
the huge tasks envis-
aged.
We have also seen that
the main banks, whom
we all bailed out or at
least bolstered as the
credit crunch unfolded,
seem to prefer to resume
paying huge bonuses
rather than helping to
stimulate the economy by
actually lending money to
cash starved enterprises,
let alone those with a
clear social agenda.
The good news however
is that amidst the current
climate of doom and de-
The Cochabamba Project
was established by Ethical
Investments on 9th March
2009 as a pioneering soci-
ety—the first to separate
the community of inves-
tors from the community
to benefit from investment
and the first to support
community based forestry.
As at 31st December it
had raised over £1.2 mil-
lion which has been in-
vested to support a unique
programme combatting
deforestation caused by
slash and burn farming
methods across the west-
ern fringe of the Amazon
basin. The programme
known locally as ArBolivia
is working with almost
1000 farmers covering
smallholders totalling
roughly 35,00 hectares
with 1400 hectares of
new, predominantly native
trees. See over for details
of its current share and
loan stock offers.
B I G S O C I E T Y ? - D O N ’ T B A N K O N I T ! S P E C I A L
P O I N T S O F
I N T E R E S T :
The “Big Society”
needs investors.
The Cochabamba
Project 2 years on.
Social Housing of-
fers lower risk op-
portunities for so-
cial investors.
Last chance to save
20% tax with Stock-
port Hydro.
Coming soon—The
Climate Connected
Benefit Society.
T H E C O C H A B A M B A P R O J E C T — £ 1 M & C O U N T I N G
E T H I C A L I N V E S T M E N T S
MONEY TALKS March 2011 Volume 5, Issue 1
David Cameron’s “big idea”
Mustard Seed Property
Ltd was established as a
community benefit soci-
ety in 2007
The Society invests in
residential property in
Cornwall and the Isles of
Scilly for use as sup-
ported accommodation
for vulnerable adults. It is
intended that capital
raised by this share offer
is invested in further resi-
dential property or prop-
erty development in Corn-
wall and the Isles of
Scilly, for the purpose of
providing supported ac-
commodation for vulner-
able adults, and in par-
ticular, those who need a
level of domiciliary care.
In 2007 the Society pur-
chased a bed and break-
fast property in Helston
for conversion to prem-
ises providing supported
living accommodation for
up to 5 individuals with
learning disabilities.
After three years of suc-
cessful trading the soci-
ety is now seeking addi-
tional capital to improve
and extend the property
to provide accommoda-
tion for a further 3 indi-
viduals.
In addition, if sufficient
funds are raise the soci-
ety will seek to expand its
property portfolio and
hence its provision for
more vulnerable adults in
the local community.
The society expects to
pay annual interest in the
range of 2—5% per an-
num.
in order to maximise the
number of community
shareholders and mini-
mise any bank loan re-
payments, we have de-
cided to keep the share
offer open til the end of
March”.
Specifically set up for the
purpose of generating
hydro electricity, Stock-
port Hydro Ltd plans to
install a 54kW plant
which will generate ap-
Directors of Stockport
Hydro are increasingly
confident that the pro-
posed community-owned
hydro electric scheme at
Otterspool Weir in Marple
will go ahead.
“In addition to the final
fundraising effort, where
we’ve raised over £100K,
we’re also waiting for
confirmation of additional
funding and a loan from
other sources. However,
proximately 200,000
kWh per year, enough
electricity for around 50
houses. It will save 90
tonnes of C02 per year or
3,500 tonnes over its
estimated 40 year life-
time.
Shares cost £1 each with
a minimum shareholding
of £250 and a maximum
of £20K.
M U S T A R D S E E D P R O P E R T Y
S T O C K P O R T H Y D R O – N O T M A D E I N J A P A N !
Green Pastures has
housed over 1000
People in the past 11
years.
At present Green pas-
tures has over 370 ten-
ants through 26 partners
with a business plan to
grow to 1,000 housing
units in 5 yrs and a
dream to eradicate home-
lessness in the UK. It
works with partner organi-
sations who need help to
house the homeless in
their area. Each partner
agrees to house and care
for them in properties
identified by the partner,
and purchased by Green
Pastures. They also pro-
vide pastoral care to their
tenants, administer the
project and maintain the
property.
Investors may select a
term of one, two or three
years but are encouraged
to renew their investment
on maturity in order to
keep the capital “in the
system”.
G R E E N P A S T U R E S H O U S I N G
Green Pastures is a Chris-
tian ministry with a spe-
cific aim to provide
homes for the homeless
and those in most
need. Its hope is that
“with the church acting as
one we can end home-
lessness”.
Individuals and organisa-
tions can invest in Green
Pastures' Community
Benefit Society by pur-
chasing loan stock. Loan
stock applicants select an
interest rate of between 1
and 5%.
Page 2 M O N E Y T A L K S
The property in
Helston
“with the church
acting as one
we can end
homelessness”.
The society has revised
its prospectus for Spring
2011 following a number
of recent developments.
ArBolivia was one of the
very first forestry projects
in the world to achieve
accreditation as a “Clean
Development Mecha-
nism” by the UNFCCC.
This meant that it could
sell certified carbon cred-
its to the national govern-
ments of the 38 countries
which signed up to the
Kyoto protocol.
However, following the
failure of climate talks in
Copenhagen in December
2009 Bolivia withdrew its
support for CDM, thus
removing the possibility
to sell any further carbon
credits in the compulsory
market.
We have therefore had to
seek alternative accredi-
tation for these credits as
“VERs” (verified emis-
sions reductions) in order
to sell them instead in
the voluntary market.
Based on the require-
ments of a pre-identified
buyer we have sought
accreditation using the
“Plan Vivo” standard .The
validation visit was com-
pleted on 4th March with
all aspects being marked
as compliant. We are
therefore expecting to
receive accreditation
imminently.
The society now owns the
rights to these credits
and will therefore benefit
from a second, much
more immediate revenue
stream in addition to its
future timber income.
It has also been designed
to provide an alternative
for those investors who
would prefer to receive a
fixed, albeit lower, rate of
interest rather than it
being rolled up.
Investors may select a
term from 5 to 25 years
and may also elect to
reduce the interest they
receive in order to benefit
the society.
In addition to the ordinary
share offer the society
has recently also
launched its first loan
stock offer.
This has been done partly
in order to facilitate the
refinancing of a loan from
a charitable trust, which
(understandably given the
problems highlighted in
our lead article) has
asked for repayment.
Loan stockholders will not
be able to vote but there
is no restriction on the
amount invested.
There will only be a lim-
ited amount of stock
available which will be
allocated on a “first come
first served” basis.
For further details about
the society please visit
www.cochabamba.coop,
T H E C O C H A B A M B A P R O J E C T T A K E S C R E D I T ( S )
T H E C O C H A B A M B A P R O J E C T - L O A N S T O C K
versity, for the purchase
of at least 50,000 tones
of VERs. It is also in ad-
vances negotiations with
another party for the sale
of a further 30—50,000
tonnes a year for the next
3—5 years.
The society is therefore
seeking additional capital
firstly as a back up
should these deals not
come to fruition in the
next few months and
secondly to lay the foun-
dations for future expan-
sion of the project.
The society has declared
its first annual interest
payment at 7.5%, which it
expects to be ratified at
the AGM on 28th April.
The minimum investment
remains £1,000 but it is
now possible to pay by
monthly installments on
an ongoing basis.
T H E C O C H A B A M B A P R O J E C T — N E W S H A R E O F F E R
With the above changes
the society has revised its
financial projections and
is now seeking to sell its
carbon credits in order to
reduce the need for addi-
tional investment capital
and also to bring forward
the date at which it hopes
to break even.
The society has a letter of
intent from HAFTrust, a
not for profit company
linked to Greenwich Uni-
Page 3 V O L U M E 5 , I S S U E 1
A typical commune with the Amboro
national Park behind
Hear Emma’s story available on the
society’s website
“The society has
declared its first
annual interest
payment at 7.5%,
which it expects
to be ratified at
the AGM on 28th
April”
100 Whirlowdale Road
Sheffield
S7 2NJ
Phone:
0114 2368 168
E-mail:
Ethical Investments was established in 1996 as an
authorised firm of Independent Financial Advisers.
In 2009 it withdrew from this market in order to
concentrate on promoting investment opportuni-
ties that provided working capital for projects with
clear social and environmental impacts. Its core
product is the industrial and provident society for
the benefit of the community.
These co-operative societies must be registered
with the Financial Services Authority but are ex-
empt from the normal restrictions on financial pro-
motions when offering withdrawable shares and/or
loan stock to the public. For further details of all
offers please contact us as shown to the left
E T H I C A L
I N V E S T M E N T S
and international brands,
including PES (Payments
for Ecosystem Services)
and carbon credits.
HAFTrust has signed a
letter of intent to pur-
chase significant volumes
of credits from The
Cochabamba Project.
In order to expand its
remit, HAFTrust intends to
create a new fund, sup-
ported by a syndicate
which includes a number
of London based universi-
ties.
This fund will be used to
kick start its own portfolio
of carbon mitigation pro-
jects in developing coun-
tries, with strict criteria
for social and biodiversity
benefits.
Ethical Investments has
been working for the past
two years with HAFTrust,
a not for profit company
linked to Greenwich Uni-
versity.
H.A.F. stands for “Hadlow
Agro-Forestry” and re-
flects its links with Had-
low College, the agricul-
tural college for Kent.
HAFTrust provides intern-
ships, work placements
and research opportuni-
ties for graduates in the
areas of software devel-
opment, sustainability,
carbon project develop-
ment and business strat-
egy.
HAFTrust funds its work
by providing commercial
services to well-known UK
As an additional funding
stream Ethical Invest-
ments has been helping
HAFTrust to set up a new
Industrial and provident
society with a view to
capitalizing on the sup-
port of the universities’
own staff and alumini.
A new society called The
Carbon Connected Bene-
fit Society is now being
registered with the FSA. A
limited initial share offer
is being proposed within
the next few weeks and
this will be followed by a
public loan stock offer.
Please let us know if you
would like an invitation
to the launch event at
Greenwich University or a
copy of the new offer.
H A F T R U S T & T H E C L I M A T E C O N N E C T E D
B E N E F I T S O C I E T Y
We’re on the web!
www.ethicalinvestments.co.uk
HAFTrust is hoping to create
a new fund to support for-
estry projects in developing
countries