Asset-Backed Investment Structure

Below is an Asset-Backed Investment Structure tailored for a Saudi commodity trading arm / family office, fully aligned with Shariah principles, Vision 2030, and trade-finance logic. This is written as a boardroom decision note, not marketing.

Agarwood & Supercritical CO₂ Extraction (SFE)
(Saudi Capital × CESI Platform)

1. What “Asset-Backed” Means in This Deal

This investment is secured by real, identifiable, and transferable assets, not by projected profits alone.

Saudi capital is backed by:

Physical extraction equipment (SFE units)
Biological assets (cultivated agarwood trees)
Processed inventory (extracts, oils, chips)
Contracted offtake cash flows

If operations stop, assets remain.

2. Core Assets Securing the Investment

A. Supercritical CO₂ Extraction Equipment (Primary Security)

High-value industrial machinery
Offshore-owned or lien-secured
Mobile / redeployable
Insurable and resaleable

➡ First-ranking lien in favor of Saudi investor

B. Plantation-Linked Biological Assets

Managed agarwood plantations
Long-term supply contracts
No reliance on wild harvesting
Multi-year productive life

➡ Provides long-duration asset value, not short-term yield only

C. Inventory & Extracted Products

Grade-defined CO₂ extracts
Agarwood chips and resins
Title retained until payment

➡ Inventory = collateral, not sunk cost

3. Asset-Backed Legal Structure

Saudi Investor
     │
     ▼
Equipment / Asset SPV (Offshore)
     │  (Owns SFE units)
     │
     ├── Lease / Tolling Agreement
     │
     ▼
JV Operating Company (Philippines)

Key features:

Assets legally separated from operations
Saudi investor retains control over equipment
Operating risk sits with CESI, not the asset owner

4. Cash Flow Linked to Assets (Not Speculation)

Assets → Production → Offtake → Cash

Revenue arises from use of assets
Returns tied to:
- Equipment utilization
- Extract volumes
- Contracted offtake prices
Not dependent on retail branding or hype

This is productive capital, not venture capital.

5. Return Profiles (Asset-Backed)

Structure	Security	Target IRR (USD)	Risk
Equipment Lease / Tolling	SFE units	12–16%	Low
Offtake-Backed Asset SPV	Equipment + inventory	14–18%	Low–Moderate
Hybrid Asset + Equity	Assets + upside	18–22%	Moderate

6. Downside Protection Scenarios

If Operations Underperform:

Step-in rights activated
Replace operator
Redirect production to third-party tolling

If JV Defaults:

Take possession of SFE equipment
Relocate assets
Monetize via resale or lease to another processor

➡ Capital preservation is built in

7. Shariah Perspective

Asset ownership (ʿayn) is clear
Returns arise from usufruct (manfaʿah) and trade
No interest-based income
Risk and reward properly shared

This qualifies as:

Mushārakah (JV)
Ijarah (if leased)
Bayʿ (sale of goods)

8. Why Saudi Investors Prefer This Structure

Familiar to commodity & infrastructure investors
Matches trade-finance mindset
Avoids speculative exposure
Aligns with intergenerational capital preservation
Vision 2030–consistent real-economy investment

9. One-Line Asset-Backed Thesis

Saudi capital is secured by physical extraction assets and real inventory, converting biological scarcity into controlled, halal, income-producing infrastructure.