Hi Zwu,Sorry I should have been more specific.The nature of the...

Hi Zwu,

Sorry I should have been more specific.

The nature of the business is that the investor only funds part of their investment upfront. The remainder is owed to Timbercorp and payable when the crop comes in. (Timbercorp then securitises these loans and gets the funds from financial instos to use to grow the crops)

Because the crop is now getting more dosh it makes the repayment of the loans to Timbercorp (and therefore back to the insto) alot more likely. The investore receives the "profit" . But the advantage for Timbercorp is they get paid what they are owed plus their profit margin and they also assist in woodchipping getting another cut.

So a higher woodchip price definetly helps Timbercorp.

In addition if these schemes return a higher return to their investors this will help loger term in selling more schemes to their investors.