BATC Malaysia

Project Funding

The targeted timeframe to complete the planting of 320 billion Jatropha is by 2030 to coincide with COP 21’s intended National Determined Contributions period. Considering the time frame, it is crucial that the project is efficiently managed through physical development and liquidity. These projects are expected to be implemented in more than 50 countries and are planned to be funded by Foreign and Domestic Direct Investment (FDI and DDI). To manage this and in creating a conducive investment environment, every participating country is required to develop a financial infrastructure with standardized Laws and operating guidelines across all MSDP projects worldwide. The key intended Financial Infrastructures to be developed are:

  1. Development of investment-grade asset classes from the Agropolitan projects/assets including the Jatropha trees.
  2. Development of dedicated regional trading platforms/securities exchanges as market entry and exit mechanisms (Green Stock Exchange)
  3. Development of green medium-term note series benchmark rating program.
  4. Development of green investment fund as the anchor vehicle in attracting investment.
  5. Development of international financial exchange as the financial platform

 

In ensuring project liquidity and management it is planned that the SPV will be listed by the 4th year of operation on the green stock exchange.

This Agropolitan application seeks investment to develop 4,000 Agropolitan Blocks.

The Agropolitan Development will operate as a Public-Private Partnership (PPP) where Bionas (Technology Provider and the Project Sponsor) will enter into agreements with the landowners and other stakeholders to Design, Finance, Build, Operate and Transfer over a period of 25 years. A Special Purpose Vehicle (SPV) will be formed to operate the PPP. Instead of land acquisition, the value of the land is converted into shares in the SPV. At the end of the concession’s period, Bionas will hand over Bionas’s interest and business operations to the landowners, ensuring the stakeholders continuous positive contribution to the environment.

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