Vireo will lead the digital green revolution – connecting impact investors from around the world with an array of sustainable green projects in emerging markets through innovative blockchain solutions.
The digital green revolution means to capitalise on technology for financing and developing green projects. Many emerging market countries in S.E. Asia, Africa and South America are ready for sustainable, green projects that present as tremendous impact investment opportunities as well. But, these projects often face finance and development obstacles – obstacles which Vireo intends to overcome.
Rather than pursue traditional financial solutions, which do not always scale to promising green projects in emerging markets, there becomes a need for alternative financing channels that are secure, transparent, and easily accessible to a range of sophisticated investors.
Therefore, we created Vireo. Vireo is launching the world’s first green exchange offering financial products directly linked to green assets (projects) and sustainable commodity production while creating substantive, yet stable, returns.
- From 9% to 15% p.a total return during the construction period (typ. 1 to 3 years)
- From 3% to 6% p.a. (excluding capital gain) during the operational period (typ. 15 to 25 years)
Vireo thoroughly vets each green asset (project) to, first, confirm and then optimise its potential sustainability and productivity, both as an effective green project for the local community and as a successful investment vehicle. Vireo then offers such candidate projects competitive financing solutions:
- Between 1% and 4% p.a. during the construction period
- Between 1% and 6% p.a. during the operational period
- Coverage of basic risks: CAPEX increase, construction delay, interest coverage or working capital requirements, insurance against country political risk
Vireo integrates these vetted assets into a transparent, intuitive digital platform that manages their financing and project development.
Vireo is the first company offering financial instruments digitally linked directly to fungible, green commodity production based in emerging markets to investors worldwide.
- Securities targeting energy will pay interest based on green kWh produced as well as certified carbon emission credits earned
- Securities targeting water treatment will pay interested based on m3 of water cleaned
In structuring the first cost-efficient and regulated green exchange, dedicated to support the smart green economy and offering both digital and traditional security instruments, Vireo creates a transparent, comprehensive and regulated financing channel with minimal financial friction as competitive financing solutions for green investments. Through Vireo’s ground-breaking, digital platform, investors from across the board will find Vireo’s products accessible, with straightforward risk/return profiles available.
Vireo will use innovative digital financial tools, such as the blockchain and digitised securities, which will be fully compliant with financial regulations and audited by regulatory authorities. Vireo will also be guided by international standards for sustainable investments, specifically those set by the World Bank, the UN Climate Change Conference (COP21) and the UN Sustainable Development Goals Agenda.
Vireo will provide three distinct instruments that function seamlessly together:
- Seeds: digital securities backed by real assets corresponding to early stage investment in green projects. Seeds investors will be able to select green project asset acquisition and development and will be entitled to returns derived from investing in the project(s’) construction period.
- Crops: digital green assets directly backed by assets, through the underlying green projects and its green commodities production. Crops will have the benefit of not only being valued based on how much green commodity each project yields during the operation period, but also on its market value separate from the project itself.
- Vireo Certificates: These are regulated financial instruments indexed on either Seeds or Crops as an alternative investment vehicle for those looking for a more diversified option. Investors receive returns based on Seeds and Crops market values.
Vireo has USD 200M worth of investment ready projects in its immediate pipeline. The Vireo solution is clearly scalable and aims to become the reference financing solution for green projects throughout the world. Vireo is confident of its robust business model and expects breakeven within 3 years and to achieve an attractive effective annualised return of 16.5% within 5 years.
