Investor FAQ
The Forest Company
11 New Street
St Peter Port
Guernsey GY1 2PF
Channel Islands
The Company was established as a closed-ended investment company in 2007 to take advantage of investment opportunities in trees, timber-related assets and associated rural real estate activities on a global basis, with a focus on investments in high-biological growth plantation regions, initially in Latin America. The Company’s sustainably grown forest resources are converted into a range of products, including sawlogs and pulpwood for the forest industry and biocarbon for the pig iron industry. They are sold mainly to locally based customers.
We invest in socially and environmentally responsible forestry projects that are or will be certified by the Forest Stewardship Council (FSC) or other internationally recognised forest management certification programmes. The Company does not acquire native forest for harvesting.
We expect that our investments will continue to involve significant afforestation. Our goal is to further develop our role as a leading investor in sustainable forest plantations in geographical areas with high natural biological growth rates.
The Company was formed in July 2007, and raised gross proceeds of USD 50 million in March 2008. In the same year the Company fully committed the net proceeds to its first two projects, the Ibiraçú project and the Aimara project, both located in Brazil.
In May 2010, the Company raised further gross proceeds of approximately USD 126 million in a private placement to institutional investors. In May and August 2011, the Company raised additional gross proceeds in two closings in aggregate of approximately USD 85 million. Two additional fundraising efforts in December 2011 and February 2012 resulted in the Company receiving gross proceeds in two closings in aggregate of approximately USD 35 million.
The Investment Manager fully committed the net investable funds raised principally to three further investments, the Antioquia project in Colombia and the Kaa and Frondosa projects in Brazil, with a focus on investing in standing timber to build the Company’s free short-term cash flow. In September 2012, March 2013 and May 2013, the Company raised further gross proceeds in three closings, in aggregate, of approximately USD 60 million. These funds have been fully committed to the Company’s existing projects. In 2015 the company raised an additional USD 25 million followed by USD 1.5 million in 2016 and regained the Pig Iron Mill in Minas Gerais.
The years of 2015 and 2016 were marked by the commitment of funds to the Paraná project and capital raise activity. The company raised USD 25 million in 2015 and USD 1.5 million in 2016. Further in 2016, the Company recovered the pig iron mill in Minas Gerais.
In 2017, the Company initiated a process of restructuring the Brazilian side of the Group, aiming to reduce complexity and the number of holding companies, whilst maintaining tax efficiency and limiting risk.
In 2018, the Company established ESG impact goals to be achieved by 2022. The goals contribute to the fulfilment of the UN’s Sustainable Development Goals (SDG). The Company successfully issued and sold 220,000 tons of carbon credits through its Colombian forest business.
In 2019, the company implemented the restructuring plan, changing the administrator and de-listing from The International Stock Exchange. The de-listing will not compromise the governance of the Company.
In 2020, the management implemented several actions to mitigate the impacts of the COVID-19 pandemic on the Company. Several measures were implemented to protect employees’ health and safety.
In 2021, the Company started the process to expand the long-term partnership with a major paper producer in Paraná, Brazil. The Company also developed a carbon removal project in Colombia on unplanted land owned by the Company.
The Forest Company raises additional capital as projects are identified and negotiated. Since inception, the Company raised a total of USD 381 million in cash.
2008: USD 50 million
The Company was formed in July 2007, and raised gross proceeds of USD 50 million in March 2008, which the Company fully committed that same year to its first two projects, the Ibiraçú project and the Aimara project, both located in Brazil.
2010: USD 126 million
In May 2010, the Company raised further gross proceeds of approximately USD 126 million in a private placement to institutional investors.
2011: USD 85 million
2012: USD 38 million
The Investment Manager fully committed the net investable funds raised principally to three further investments, the Antioquia project in Colombia and the Kaa and Frondosa projects in Brazil, with a focus on investing in standing timber to build the Company's free short-term cash flow.
2013: USD 54 million
The Company raised further gross proceeds in two closings, in aggregate, of approximately USD 58.8 million (net proceeds of USD 54.3 million) these funds have been fully committed to the Company's existing projects.
2015: USD 26 million
In June 2015, the Company received signed subscription agreements (warrants) for a value of USD 25.5 million, which had been fully drawn down at the end of September 2016.
2016: USD USD 2 million
An additional subscription of USD 1.5 million was entered in Q3 2016 by existing investors.
What is Timber Capital? The Forest Company has an investment management agreement with the investment manager Timber Capital under which the investment manager will be responsible for sourcing, evaluating, negotiating, completing and monitoring investments, in compliance with our investment policy and subject to the overall supervision of the Board. The investment manager will also advise the Board on proposed divestments and will be authorised to implement them.
You can download the latest Annual Report and Financial Statements from the Financial reports section.
The Forest Company reports its results on a semi-annual basis.
The financial statements are prepared in accordance with the International Financial Reporting Standards (“IFRS”).