What are Silvan Green Bonds?
Silvan’s offering of Silvan Green Bonds are designed to preserve land as effieciently as possible by avoiding the commercial mortgage market and reducing our cost of capital. The Bonds provide a fixed rate of interest to Bondholders for the term of the Bond as set forth below. The rates on which the Bonds are offered are updated quarterly. Full prospectus here.
How do Silvan Green Bonds work?
Silvan Green Bonds function similarly to a Certificate of Deposit. For example:
1. A Bondhold purchases a Bond for $1000 USD with a 30 year term at 5.125% APY
2. Silvan pays the Bondholder Principal and Interest of $4478.99 USD on the issuance date plus 30 years.
Transactions are facilitated by Dwolla, Plaid, and Silvan's secure site. Starting 30 days prior to maturity, Bondholders will receive email notification(s) providing instructions for redemption or reinvestment. Such notification will contain (i) the current rates then offered on the Bonds and (ii) if not previously received by the Bondholder, the then-current prospectus for the Bonds that would be issued upon reinvestment. If a Bondholder notifies the Issuer in writing, email, or online selection by the maturity date that the Bondholder elects not to reinvest in the Bond, then at maturity, the Issuer shall promptly repay the principal and any accrued but unpaid interest. If a Bondholder does not respond to the notice(s), both principal and interest are automatically reinvested for the same duration as the previous Bond consistent with the current offering. If the original interest rate is not offered at the time of reinvestment and the Bondholder provides no instructions, renewed Bonds may be assigned a lower rate. Automatic reinvestment at maturity will not be offered to Bondholders residing in the states of California, Georgia, Kentucky, Louisiana, Ohio, and Oregon. Unless the Issuer receives documented positive affirmation of intent to renew from Bondholders residing in these states, principal and accrued interest will be paid out in full at maturity.
Are Silvan Green Bonds secured or unsecured?
Silvan Green Bonds are secured by the assets of the Silvan Foundation. Silvan green Bonds are not secured by the FDIC or any other government body. The Bonds are senior to any other Silvan obligation. The Bonds are not, and will not become, subordinate to any other indebtedness of the Issuer.
What is "Impact Investing"?
Impact investing (also known as community investing) finances socially, economically, and/or environmentally beneficial organizations that generally cannot attract efficient financing through traditional market mechanisms. Impact investing provides an alternative source of capital and a more efficient way to channel funds to these organizations. It is a method of investing focused on generating both financial return and a positive social and environmental impact.
Who can invest in Silvan Green Bonds?
Bonds are offered to Accredited Investors, under SEC Rule 506(c) of Regulation D.
In summary the SEC defines an accredited investor as either:
1. an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse or partner exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
2. a person whose individual net worth, or joint net worth with that person's spouse or partner, exceeds $1,000,000, excluding the person's primary residence.
How does Silvan use the proceeds?
Bond proceeds will be used to support the mission of the Silvan Foundation, primarily in the purchase of land, and investments intended to cover the cost of the permanent preservation of that land. This land may be in any jurisdiction that has a reasonable expectation of the stability of owners rights. Any species planted by Silvan must be believed to be ‘native’ to that location, and have a reasonable expectation of survival. Silvan may invest in cash, cash equivalents, and publicly traded securities, including but not limited to: bankers acceptances; commercial paper, municipal bonds and corporate bonds; bank or credit union deposits; certificates of deposits (CDs); U.S. government or agency obligations, including U.S. government backed investments of any kind such as certificate of deposit account registry service (CDARs) or federally insured cash account (FICA) or similar; variable rate demand Bonds (VRDNs) or related instruments; money market funds, short-term bond funds, individual equities, electronically traded funds, and mutual funds. The Issuer may also enter into foreign currency exchange contracts and cross-currency interest rate swaps, but only in order to hedge the Issuer’s currency risk. Any securities brokerage relationship undertaken by Silvan will be with a licensed broker subject to the laws of the United States.
How do I invest in Silvan Green Bonds?
The Bonds are available for purchase on our website at secure.silvanfoundation.org. Interest rates are fixed at the outset of the investment and are paid as simple interest. Bonds are purchased directly from the Issuer through the Issuer’s website. To purchase a Bond, investors must register their personal information and then select from the available options (“listings”). Payment for purchases of the Bonds will be processed through an ACH transaction linked to an investor’s bank account. All ACH transactions must be drawn on a U.S. bank account. The Issuer reserves the right to suspend the sale of the Bonds for a period of time or to reject any specific purchase order. See Description for additional information regarding the Bonds. The Issuer acts as the registrar and as paying agent. To purchase Silvan Green Bonds, please click 'Invest Green Bonds' above or here for our secure site.
Are there additional fees associated with Silvan Green Bonds?
Can I redeem Bonds early if needed?
Bonds are expected to be held to maturity, but if needed, the Bondholder may have early redemption. Early redemption by the Bondholder will result in a penalty: the sum of the interest paid or accrued to the date of request. Silvan will redeem the Principal to the Bondholder within 30 days. To request early redemption the Bondholder should call the Silvan Foundation at 800.414.7112.
Are Silvan Green Bonds taxable?
Yes. Bondholders earning greater than $600 in any calendar year will be provided with a Form 1099-INT or other notice in January of each year indicating the interest paid or deemed to be paid on their Bonds in the prior year. Depending upon the type of Bond held, Bondholders have the right to either receive annual payments of accrued interest, have those annual payments of interest reinvested, or make a donation of the annual interest. The interest will be taxable to Bondholders annually regardless of whether the Bondholder receives it, reinvests it, or donates it to the Issuer. If the Bondholder donates the interest to the Issuer, the Bondholder may be entitled to a charitable contribution (i.e., donation) deduction. Payments of principal and interest may be subject to “back-up withholding” of U.S. federal income tax if the Bondholder fails to furnish the Issuer with a correct Social Security Number or tax identification number, or if the Bondholder or the IRS has informed the Issuer that the Bondholder is subject to back-up withholding. Each prospective investor is hereby advides to seek their own tax advice concerning the tax consequences of an investment in Silvan Green Bonds.
What are current Silvan Green Bond rates?
1 Year - 1.625% APY
2 Year - 1.875% APY
3 Year - 2.000% APY
4 Year - 3.625% APY
5 Year - 4.500% APY
10 Year - 4.625% APY
20 Year - 4.750% APY
30 Year - 5.125% APY