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Morongy - Rainforest CO2 Reduction

This product offers the opportunity to participate in a unique and attractive ESG investment project with a fixed return of 7.5% per annum plus a 'kicker-payment' at maturity. The credit linked note (CLN) finances the purchase of 85,000 hectares of rainforest in Paraguay with the aim of preserving it for environmental protection and reduction of CO2 emissions. 

For the preservation of the forest, Morongy SA (Paraguay), a subsidiary of Morongy AG (Switzerland) and borrower in the CLN, receives financial compensation through a climate protection program of the Paraguayan government. Investor's principal amount and interest payments are secured by a mortgage collateralization of the land. This investment not only offers a collateralized fixed-income including a kicker, but also an active contribution to the protection of rainforests and thus the reduction of CO2 emissions.

 

Learn more about the carbon markets

Asset Class Private Debt , Carbon Assets
Liquidity Best Effort
Goal Capital Appreciation
Theme Sustainability
Product TypeCLN, Swiss ISIN
Min. Investment: CHF 10’000
Maturity5 years

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Investment Highlights

Usage of Credit Linked Note (CLN)

The funds raised by the CLN will be used for a mortgage secured loan to acquire Paraguayan rainforest. The project initially comprises 85,000 hectares of rainforest in the Chaco Seco region in Paraguay, there's a potential expansion of the project area up to 200,000 hectares.


Fixed and secured Return


Investors in this CLN benefit from a fixed interest rate of 7.5% p.a. plus a kicker of 110% on the principal with pay-out at maturity. The CLN is secured by the land purchased by the funds raised by the CLN. 

ESG Relevance

The land purchased will be included in the government-supported environmental program "Régimen de Servicios Ambientales", which generates a fixed return per hectare per year. This program aims to protect Paraguay's natural forests, preserve the absorption of CO2 and empower the government to further enhance its efforts to fight climate change through CO2 certificates. The government acts as a counterparty of the environmental program and guarantees the annual installments by law. 

General Product Context

Access innovative asset class with the environmental impact

Natural Environment Preservation

Due to the over-harvesting of the forest in the past decades, the rainforest has been exploited to such an extensive degree that now is the time to turn the tide. By making the forest a revenue-generating asset it can be both profitable and sustainable.

Cultural Heritage Preservation

Due to the disappearance of vast amounts of the rainforest, many of the indigenous people have lost their homes and are losing their cultural heritage with it. By preserving the forest not only will we save the natural part of it but also the culture of the local inhabitants. 

The Leader of The Nature-Based Economy

Morongy is a forest investor and manager with extensive experience in Latin America, striving to become one of the world's leading players in the nature-based economy and to be a catalyst with its natural capital solutions. 

Its competency in economic and ecological land-use, restoration and conservation leads to state-of-the-art methodologies for protection, recreation, initiation, acceleration of recovery processes of ecosystems that have been disturbed.

 

  • Morongy SA has in-depth experience in managing and preserving hundreds of thousands of hectares of forest in South and Central America.
  • The use of the Credit-Linked Note (CLN) to preserve the rainforest in Paraguay makes the product ESG relevant. 
  • Rainforest preservation enables issuance of carbon credits which are part of a worldwide climate program aiming to cap carbon emissions.

Product Team

STRATEGY MANAGER
Roger Brunner
CEO Morongy AG/SA;
25+ years experience in the paraguayan agricultural industry 
Thomas Beute LL.M
Legal Counsel Morongy AG/SA;
Owner of Doral Group LLC specializing in sustainable solutions
STRATEGIC ADVISORS
Louis Bisang, EMBA, Mlaw
Chairman at Digital Waves; Senior Advisor, Risk Committee & Head BD Switzerland at Turicum Private Bank; Board Member at Wealth Management Zurich​
Tobias Straube, EMBA ​
COO at Digital Waves; Partner at Cambrian Futures; Instructor at UC Berkeley Executive Education; Co-Founder at Scio Network; and Startup Mentor.