Nature is listed on the Hong Kong Stock Exchange since May 2011. The Project Sponsor is Mr. Se Hok Pan, the founder and Chairman of the Company. The current shareholding structure of the Company is: (i) IFC 7.2%; (ii) Mr. Se Hok Pan and his family 48.6%; (iii) Morgan Stanley Private Equity Asia (“MSPEA”) 17.9%, and (iv) Public Float 26.3%.

As the Company grows it seeks to develop plantation resources which it can control and which hedge against future wood price increases. Specifically, Nature is seeking for a potential acquisition plantation forests in the Guangxi Zhuang Autonomous Region of China (“the Project”). At the time of this disclosure, the consideration of the Project by the Company is at early stage and there is no certainty of completion. The Company has not signed any letter of intention or any legally binding agreement for the Project. IFC is proposing a US$40m financing package to support the development of forest resources business of the Company, including the Project.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

The project will be located at rural areas of Guangxi Zhuang Autonomous Region of China, where there are existing forestry plantation operations and basic infrastructure, such as forestry roads.

The Project is expected to: (i) support the sustainable economic development and natural resources management in the frontier region; (ii) create more than 200 direct jobs (based on the projected plantation size achieved) and improve local livelihoods in rural/frontier Chinese provinces; and (iii) have a strong demonstration effect for China forestry sector to support legal and certified forestry operations.

1. Long-term partnership. IFC can provide the long term financing to support the Company''s forestry plantation operation and its strategy of vertical integration to upstream plantation area.

2. Risk mitigate: IFC''s continuous financing support for the Company, an existing IFC client, can play important stamp of approval role and strengthen capital market confidence in the Company''s initiative in expanding its forestry operation.

3. Standard setting: IFC will continue to help Nature improve its capacity in environment and social management systems as well as sustainable natural resource management.

4. Global sector knowledge: IFC can keep introducing international recognized standards and provide technical support for the Company to further improve its supply chain in terms of wood sourcing and forestry management.

The key environmental and social issues from the currently known plantation targets relate to land acquisition, including the potential for physical or economic displacement; land use change, including the potential to impact biodiversity or ecosystem services; development of supporting infrastructure (e.g. roads) and the potential to impact indigenous groups (referred to as ethnic minority groups in China).

  Key issues from Nature’s broader operations center on concession management (Peru and Yunnan) and related assurance processes; third party wood sourcing and related assurance processes and operational management with particular reference to occupational health and safety, pollution control and community outreach and development.

   The proposed use of IFC new financing and Nature’s underlying operations are considered to hold potential significant adverse social and/or environmental impacts that are diverse, irreversible or unprecedented and as such, the project has been classified as category A according to IFC’s 2006 Environmental and Social Review Procedure.