ForestFinance

The ForestFinance Group, with companies in Bonn and Panama, disposes of many years of experience in the development of forestry investments. By now, the group of companies manages forest investments worth more than €35 million and amounting to over 3,500 hectares of forest in Panama and Vietnam. The CEO of both ForestFinance Service GmbH and Forest Finance S.A. Panama is Harry Assenmacher, who has played an active and leading role in the field of ecology. About 15 employees in the head office in Bonn, Germany are mainly responsible for customer service and contract handling. In Panama and Vietnam, there are further approx. 200 workers permanently and at peak times up to 500 workers employed and occupied with the afforestation and maintenance of the ForestFinance forests.

History
What started out as the partner company of the German-Panamanian forestry company Futuro Forestal in 2000, became an independent German limited liability company (ForestFinance Service GmbH located in Bonn) and a Panamanian corporation, Forest Finance S.A., specialising in ecologically sound forestry investments, in summer 2005. The ideal symbiosis of profitable investments and ecologically meaningful activities is the concern of all staff and the origin of all ForestFinance Group products. The company’s founder and CEO Harry Assenmacher afforested “his” own small forest intended for his private pension in Panama as early as in 1997. Against this background the company offers a variety of investment products, all related to reforestation. With the TreeSavingsPlan the ForestFinance Group felt it necessary to develop an investment product which allowed low budget investors the opportunity to make a sustainable investment with lucrative returns in an ecologically sustainable raw material. Since then, more than 7,000 customers in Germany alone have placed their trust in ForestFinance’s investment products. By now, the group of companies manages forest investments worth more than 35 million euros and amounting to over 3,500 hectares of forest in Panama and Vietnam.

Social and ecological aspects
ForestFinance manages its forests according to strict ecological guidelines. ForestFinance forests are tropical mixed forests which, unlike monocultures, ensure a high degree of bio-diversity. ForestFinance does not clear-cut at harvest time. Thus, the investor helps to create a permanent new forest which fulfils all ecological functions such as the protection of water, topsoil and climate, simultaneously serving as a habitat for endangered animals. ForestFinance’s forestry techniques combine ecological forestry with predominantly native tree varieties which are suited to the area, and commercially viable. In this way functional mixed forest ecosystems promote considerably less use of pesticides than in a monoculture, decreasing costs and increasing environmental benefits. ForestFinance also offers social security and fair wages as well as constantly continuing education and training to all its employees at every level.

Quality Standards
All forests of ForestFinance correspond to the standards of a certified sustainable forestry management. In a worldwide comparison, the reforestation project of ForestFinance was the second one receiving “Gold Rating” from the Climate, Community & Biodiversity Alliance (CCBA). The CCBA is a cooperation of the leading research facilities and non-governmental organisations, which supports the development of reforestation projects having a positive effect on the climate, the local development and on the biodiversity. The creation of carbon credits also corresponds to accepted sustainable standards. In May 2009, the ForestFinance project “CO2OL Tropical Mix” was tested according to strict social and ecological criteria of the CrabonFix Standards and successfully pre-validated by the Technical Board of the Carbon Fix Standards. Furthermore, ForestFinance is cooperating with internationally established, academic institutes to constantly improve the efforts. The TU München (chair for forest management), the Smithsonian Tropical Research Institute and the University of Panama are only some examples. The Panamanian environmental authority ANAM regularly checks the forestry activities and inspects the parcels. If an investor nevertheless is not satisfied with the work of ForestFinance, he has the opportunity, at his own charge, to assign another company to plant and take care of the plants. So far, there has not been any situation like this.

TreeSavingsPlan™
The TreeSavingsPlan™ allows low budget investors to make a sustainable investment in forest. For twelve monthly installments at least twelve trees are planted and tended for the investor in Panama. After 25 years, the trees are harvested (without clear-cutting) and the profits are paid out. Afterwards a sustainable tropical mixed forest is left in place.

ForestSavingsPlan
The ForestSavingsPlan links ecological investment in exotic timber reforestation to investment security through a buy-back guarantee. Legally, the ForestSavingsPlan consists of two contracts: a land lease contract and a forestry service contract. A ForestSaver leases a piece of land of at least 1,000 m². At the same time, the ForestSaver tasks ForestFinance with the reforestation of this land (foresty service contract). The main harvest takes place after the 25th year. The ForestSavingsPlan is covered against loss by a ForestFinance buy-back guarantee of up to 200%.

WoodStockInvest
With WoodStockInvest the investor acquires real estate (land lease or purchase with direct title real estate ownership and registration) and additionally signs a forestry management and service contract for a period of 25 years. The real estate is former pasture land of one hectare (respectively a multiple of it). On this land, a new species-rich mixed forest develops out of seven types of timber and up to 50 further native trees. Right in the beginning first yields can be gained from sales of CO2 credits (optional). Further minor yields are to be expected from thinnings. The main harvest takes place after the 25th year.

CacaoInvest
The investor of CacaoInvest leases an area of at least 0.25 hectares of Agro mixed forest for a period of 25 years. Half of the area is afforested with timber for the production of exotic wood. The second half is planted with plants for the production of first-class ecological cacao for the global market. Outputs start already in year two after having invested. Besides the annual harvest of cacao, a forest grows – it produces exotic wood which is certificated and ecologically planted. CacaoInvest offers the possibility of an investment which is ecological and sustainable. It combines regular outputs and high profitability.

GreenTeak
With GreenTeak, ForestFinance offers a fair, sustainable investment in teak. The customer invests in at least 0.5 hectare of an already existing teak plantation. After harvest, ForestFinance pays out the profit to the investor and converts the plantation into a bio-diverse mixed forest.

GreenAcacia
The investor of GreenAcacia makes an investment in an already afforested Acacia Mangium plantation in Vietnam. In these already existing forests, first thinnings can be realised quickly. After a period of approximately seven years, the final harvest takes place and the areas are gradually converted into a permanent mixed forest of native species within the scope of an ecological biodiverse forestry management.

Ciudad del Saber
ForestFinance is member of the Ciudad del Saber, a non-profit foundation domiciled in Panama. The name of the foundation is translated with “City of Knowledge”. Since 1995 Ciudad del Saber offers a platform for a variety of projects, companies and their ideas, to support collaboration, progress and to provide a centre for knowledge exchange. The projects mainly focus on topics of sustainability, innovation and ecology. Today Ciudad del Saber is one of the most innovating centres in the region, where dozens of organizations perform their activities, interacting and contributing to the full development of Panama and Latin America.

The work areas of the foundation include Information Technologies, Biosciences, Environmental Management, Human Development such as Business Management and Entrepreneurship. The campus of the Ciudad del Saber is a beautiful example of space transformation. What was once designed to lodge a military base is now a centre of knowledge, entrepreneurship and innovation. 296 acres of that former Fort are taken up by the City of Knowledge, and in the rest of the old fort there are family residences, educational activities take place, and various organizations have their offices in a biodiverse, public and open space. The office of ForestFinance S.A. Panama is also located on the Ciudad del Saber campus.

B.A.U.M. e. V
B.A.U.M. e. V. (German Environmental Management Association) was founded in 1984 as a non-party environmental initiative. All the members lead their company according to the B.A.U.M. code of honour which contains ten guidelines of behaviour. Being an environmentally conscious and sustainable company, ForestFinance has been member of B.A.U.M. e.V. since October of 2008. B.A.U.M. e.V. is sure that the public goods water, air and earth, as well as flora and fauna should be treated with care and that this has to be assured with the help of the instruments of market economy. So says the first article of the code of honour: “Environmental protection is one of our prior business objectives. We include it into our principles of management. It is a continuous process to realize this.”

Engineers Without Borders
Engineers Without Borders is a non-profit organization that is primarily engaged in the solution (solution development) of engineering tasks. The association consists of active engineers from different sectors, architects, engineering students, as well as supporters and sponsors of all kind of professions. Together with the association "Puente del Mundo e. V." (Bridge of the World) and ForestFinance, the Engineers Without Borders' regional group of Hamburg provides help for self-help to a small community in Panama. The village named "Potrero de Olla" is situated near the ForestFinance forests in Las Lajas in the province of Chiriquí. Here, around 250 inhabitants live almost self-sustainingly and apart from civilization. Electric power and drinking water supply exist as little as schools or medical facilities. Several times a day the children of each household have to carry up to 20 liters of water from distant wells. This is an exhausting and dangerous task as the trails are steep and threatened by soil erosion. This project aims to support the residents to improve the living conditions in Potrero de Olla. Thanks to this support the bad sanitary conditions have been improved by replacing the burrows with ecological and sanitary worthwhile composting toilets. The current project is dedicated to the urgent question of water supply. In the future, collected rainwater used during the dry seasons, shall be saved and filtered in self-constructed cisterns. An established technique, that is economic and easily feasible at the same time. Thus, the way to economic independence is paved for the residents, who are involved in the planning and implementation. As a socially and ecologically responsible company, ForestFinance is especially interested in the regional development in Panama. ForestFinance supports the project with a donation of 8,000 USD, used to finance construction material and transportation costs. The close contact and the exchange of experience is a win-win situation.

BARCA
BARCA (Brinkman y Asociados Reforestadores de Centro América) ForestFinance’s local service provider. Just like ForestFinance, BARCA pays heed not only to the quality of the forests, but also to the social basic conditions for the workers. And this in turn is checked and validated continuously by independent organizations. In Panama, BARCA plants new forests for ForestFinance and takes care of the existing ones. As BARCA is a service provider, the company has a lot of experience in handling the Panamanian flora and fauna. BARCA is part of the Canadian group Brinkman & Associates, one of the leading companies in reforestation, soil regeneration and eco systems. The forestry company has been at the market for 35 years, planted over 900 million trees and supervises half a million hectares land alone in Canada. The Central American subsidiary company BARCA was founded by Fred Schutter, Diego Dipieri and Ricardo Lujan. Our new forestry partner operates in Panama, Costa Rica, Belize, Honduras and El Salvador.

Contact
Forest Finance S.A. Panamá

Casa 342 A, Ciudad del Saber

Clayton

Panama City, Panama

[mailto:info@forestfinance.com info@forestfinance.com]