GAA Sustainable Resources Fund (Series 2) SP. Greening the Planet for Sustainability and Profit

Transcription

1 GAA Sustainable Resources Fund (Series 2) SP Greening the Planet for Sustainability and Profit

2 With ever rising global pollution due to the burning of fossil fuels and unabated agricultural slash and burn policies, the global demand for alternative, clean and sustainable energy is growing rapidly Government agencies around the world are finally recognising that action must be taken to combat global emissions of pollutants, and are now coming together to impose strict guidelines on reduction of the use of fossil fuels such as coal. UK legislation alone requires that 30% of the nation s electricity be generated from renewable energy sources by 2020, including solar energy and wind, as well as clean, green biomass fuels produced from plant biomass waste. Numerous power stations in Britain and beyond are now required to reduce the amount of coal they are burning in favour of such clean fuels. Introducing the GAA Sustainable Resources Fund (Series 2) SP (the Fund ), which aims to help provide a solution to the rapidly increasing European, Asian and, indeed, world demand for biomass fuel The Fund is offering investors the chance to participate in the 50% ownership of a Malaysian based Project Company, GAA Palm Power Solutions Sdn Bhd, designed to produce large volumes of biomass fuel from the waste material of a largely ignored natural resource found in abundance across Malaysia, created when replanting oil palm plantations in Malaysia. Rather than being left to rot in the plantation, the Oil Palm Trunk can now be processed on site (using specialist heavy duty mobile equipment) and turned into a fibre fuel for domestic use. When transported to one of our strategically located pellet mill facilities, it can also be converted into biomass fuel pellets for international consumption. Locally, the processed fibre can be used by companies in the cement, brick, rubber glove and paper industries as an alternative to fossil fuels; internationally, the biomass pellets can be used to fuel power stations and other large industrial plants. The Project Company aims to attract up to US$20 million on a 7 year, closed ended basis from the Fund. The Fund is on offer until 31 October 2013 but could close earlier should capacity be taken up before then. Over 7 years, the Project Company is looking to generate a net profit from the sale of domestic fibre and international pellets of more than US$200 million, with a targeted value of more than US$60 million by the end of year 7 based on projected earnings. The Fund will sell out its position in the Company at the end of year 7 (or earlier if a buyer comes forward before then). All investors will benefit from the Fund s 50% shareholding in the Project Company from both an income and growth perspective. 2

3 The Project is poised to produce large volumes of clean biomass fuel to help fulfill the growing global demand for sustainable and renewable energy All investors in the Fund will benefit from the following: More than 2 years of completed biomass fuel Research & Development in Malaysia A project which has already been mobilised to harvest Oil Palm Trunks and create both laboratory and commercially tested biomass fibre fuel and pellets The creation and provision of a genuine commercial service to existing plantation owners to help clear and remove solid biomass waste prior to replanting The chance to help end the ongoing haze problem which plagues South East Asia each year as a result of open burning policies to clear biomass waste from plantations The chance to help green the planet through the production of clean biofuel which reduces carbon emissions and toxins The creation of a genuine Supply Chain model to provide both domestic and international end users with an economical and clean Malaysian produced biofuel The chance to participate in 50% of all net project income generated for 7 years The chance to participate in 50% of project value at the end of 7 years or before The chance to participate in a transparent and ground breaking programme that is projected to return more than 5 times investment over 7 years A strong executive and management team headed by the son of the former King of Malaysia 3

4 Mobile harvesting Cells are deployed to clear plantations, shred the trunks and convert the biomass waste to a useable biomass fuel Fixed pelletising Pods are used to process the locally produced fibre and to manufacture biomass pellets for export to international power stations Fund Structure Corporate Strength Fund Name : GAA Sustainable Resources Fund (Series 2) Offer Period : 1 August 31 October 2013 Structure : Closed ended Segregated Portfolio Fund Life : 7 years Fund Terms : 50% ownership of Project Company Minimum direct investment : US$100, (plus multiples of US$50,000.00) Fees : Up to 7% placement fee plus 2% AMF Performance Fee : 20% of net new highs Issuing : GAA Investment Funds SPC Company Limited Fund Manager : GAA RT1 Limited Fund : Apex Fund Services Limited Administrator Auditor : KPMG Legal Counsel : Conyers, Dill & Pearman Jurisdiction : Cayman Islands Dividend Policy : Declared annually on 31 December Targeted Return : Greater than 5 times multiple on investment 4

5 Projected Fund Returns Annual dividend (%) Cummulative dividend (%) Total projected Fund returns include annual dividends and sale of 50% share of Project Company at end of year 7 (or before). Annual dividends and value of share in Project Company shown here are for indication purposes only and are not guaranteed. The actual values may be higher or lower than illustrated Management Team HH TUNKU TAN SRI IMRAN IBNI TUANKU JAAFAR Chairman Well known and charismatic Malaysian businessman and member of the Negeri Sembilan Royal Family, Tunku Imran chairs a number of listed companies in Malaysia and has strong ties to the Malaysian plantation, power generation and cement industries. He is currently the worldwide President of the Commonwealth Games Federation and is also President of the Olympic Council of Malaysia. JEREMY SMEETON Chief Executive Officer A British businessman based in South East Asia for more than 25 years, Jeremy founded the GAA Group in 2000 in compliance with the laws and guidelines of a number of onshore and offshore jurisdictions. He has designed and launched more than 14 quant and hedge funds investing in equities, property, futures and commodities and continues to be an innovator within the industry. ALLAN MASON Chief Operating Officer An Australian businessman with nearly 30 years experience in Asia, Allan was previously based in Singapore, Jakarta and Tokyo in senior managerial and regional positions with Procter & Gamble, Wellcome, Citibank, Shinsei Bank and Prudential. He has championed the development of the Malaysian oil palm biomass industry for more than 2 years and today resides in Kuala Lumpur. CARL BUTLER Chief Financial Officer A British businessman based in Asia for more than 18 years, Carl has been responsible for all matters financial and administrative for the GAA Group since He sits on the board of all of GAA s fund and fund management companies and ensures a smooth interface between the various companies based in Bermuda, Cayman Islands, Malaysia and Singapore. 5

6 GAA Investment Funds SPC Limited Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands This%document%is%issued%by%GAA%RT1%Limited%for%information%purposes%only%and%does%not%constitute%an%invitation%or%offer%to%invest.%It%does%not%replace%the% Private%Placement%Memorandum%of%GAA%Investment%Funds%SPC%Limited%or%the%Supplement%to%the%Private%Placement%Memorandum%of%the%GAA%Sustainable% Resources%Fund%(Series%2)%SP.%Only%sophisticated%investors%who%qualify%to%invest%may%apply%in%writing%for%further%information.% Changes%in%foreign%exchange%rates%may%have%an%adverse%effect%on%the%price%or%value%of%the%investment.%No%representation%is%being%made%by%the%Fund%or%its% directors%as%to% the% accuracy% or%completeness% of% the%information% contained%in%this%document.% Past% performance% is% not%necessarily%a% guide%to% the%future.% The% value%of%the%shares%in%the%fund%may%fall%as%well%as%rise.%% Returns%are%paid%gross%and%tax%may%be%due%according%to%the%residence%or%domicile%of%the%investor.%Tax%concessions%are%not%guaranteed%and%may%change%at%any% time;%their%value%will%depend%on%individual%circumstances.%it%is%the%investor s%responsibility%to%ensure%that%the%making%or%holding%of%an%investment%complies% with%any%restrictions%or%other%provisions%of%any%relevant%trust%deed%or%any%other%regulations%affecting%the%investor.%all%figures%used%in%this%document%are%based% on%projections%and%are%not%guaranteed.%final%results%may%be%significantly%different%to%those%presented%in%this%document.% %