Our Green Buyback Option Program
Our Buy Back option Program is the engine for collateral wealth creating. When you invest in our projects we give you the opportunity to ensure the liquidation of the asset at right depending on the category of the option we offer. We have defined three sorts of Option Classes expiring in 1, 3 and 5 years; being the strike price of the option defined by the selling price plus a premium or discount dependent on the expiration term and market risk. During this time our clients will have 100% ownership over the asset.
How do we assure that we will respond to the buyback option?
Every time we sell an eco-asset with a BBOP we store the asset value into hard and financial assets throughout a collateralized portfolio. Depending on the option term the capital will be allocated into different Cash/Hard Assets ratios investment strategies. What we look for is to ensure that the liquidation of the assets is easy enough as the expiration term of the option approaches.
Who will be the investment manager of the stored asset value?
Our company is responsible to respond to the buyback option book. However, we have designated CQR Market Intelligence as the investment management office who will be responsible for the buyback option book management. The asset allocation strategy will be carried out by local asset management banks that will be responsible for managing the stored asset value according to the option expiration dates.
How do we assure that we are storing the asset value in a responsible way?
In the process of investing the stored eco-asset value, we will choose Institutions with more than 20 yrs of experience allocating capital for their clients. Our aim is to provide the highest financial and governance standards to ensure our buyback option book is well managed from a risk management perspective. In the same time, these criteria will help us to work in a regulated environment according to the local financial authorities giving complete transparency to our client’s buyback option book.
How do we prevent eco-asset bubbles’ risks?
Asset bubbles are an inherent risk to any market however we want to preserve a healthy market trying to offer asset prices aligned to industry standards. All of our projects will be priced taking into account institutional valuations given by Banks or independent Real Estate offices. However, due to the nature of the buyback option, the asset price during the option expiration date will be given by its market price, which finally is the main reason to justify a buyback option contract.
Can I liquidate the Eco-Asset before the expiration date of the option?
Yes you can, but charges will apply depending on how long the option will expire