Tuesday, February 22, 2011

Bionas - Murabahah Investment Programme

Bionas eyes GBP500m London listing

Bionas Group is looking at raising up to GBP500m from the proposed listing of its subsidiary Bionas Fuel (UK) Ltd on London’s Alternative Investment Market by mid 2011. The Malaysia-based company plants jatropha fruits and produces jatropha additives to make biodiesel. The IPO proceeds will mainly be used to expand its jatropha plantings in Africa. The fruit is not edible, unlike conventional vegetable oils used for biodiesel, and thus does not face the food versus fuel dilemma. Barclays will be handling the IPO.
 (Source : Business Times)

Is this company a good investment?
From Bionas website ( http://www.bionasmalaysia.com/investment.html) , this company provides murabahah investment programme.

Retail Programme :-
< 100 acres

1 unit (minimum) : A 1/4 acres land plot - Purchase Price : RM 3000.00
(500 seedlings and 10 liters fertilizer + farming cost)
(grace period of 1 year)

Purchase Price : RM 3000.00
First Year Deferred Payment : RM 300.00
Second Year Deferred Payment : RM 450.00
Third Year Deferred Payment : RM 750.00
Fourth Year Deferred & Final Payment : RM 3,750.00
Selling Price/Payment to Participant : RM 5,250.00

Profit Margin : 75%

Is this a ponzi scheme?
If no, this could be a good investment, which provides 15% Annual Compound Return of Capital.

I would like to get more feedback from those invested in this programme.