Merzbach Mezzanine Fund 1

Merzbach Mezzanine Fund 1 (MMF1)

Merzbach Group has developed in cooperation with the World Bank Carbon Finance Business the MMF1 investment fund, a private mezzanine fund that provides long-term financing based on the value of Emission Reduction Purchase Agreements. This financing will be used to implement capital investments in clean energy and biomass assets that reduce emissions of greenhouse gases. Such reductions generate market- tradable credits under new environmental regulations for use in countries that have an appropriate regulatory regime in force such as those who ratified the Kyoto Protocol (Europe, Canada, and Japan). MMF1 has a unique financial structure designed to deliver one of the lowest costs for credits available in the market, and superior economics to its investors. The Merzbach team has an extensive track record in closing transactions and managing risks in the energy/industry sectors.

Reactions and Comments:

¨“We need this type of financing for our projects” – VROM/Senter (Dutch Ministries of Environment and Finance)

¨“The right Team” (Financial Advisor to a major US investor)

¨“we found your product remarkably well designed” (Leading Company in Construction Materials)

¨“a unique approach to a new class of assets combining advantages of a first mover and credibility of execution” (circled Investors)

¨"we need MMF1 financings" Conama, Chile

"our Environmental Due Diligence team rated your fund above expectations, which means you got our highest rating." (Financial Advisor to a Leading Investor

Letter of Support from the World Bank Carbon Finance Group