The Panama Cocoa Afforestation Project is a large-scale fine-aroma cacao development located in La Soledada, Soná district, jurisdiction of Veraguas Province, Panama. The project converts approximately 750 hectares of usable degraded cattle pastureland into a technified, export-grade cacao agroforestry platform, across a phased build-out through 2028.

The project is developed by Aegean American S.A. and implemented by GRUVASA and SEPLASA. It is structured as a $36.5 million senior secured offering for Phase I (750 hectares), with subsequent phases expanding the platform to its full 2,150-hectare target.

Key Project Parameters

Cacao variety:
‍Fine Aroma (ICS-95 / IMC-67)
Target close:
Q3 2026
Planting density:
1,180 trees per hectare
Raise structure:
Outcome Bond
Phase I:
800 hectares / $36.5 million
Current status:
Site preparation underway, nursery active
Phase I first harvest:
Year 3 from planting
Full production potential:
Year 5 (Phase I)

Location and Climate

La Soledad, in the Soná District of Veraguas Province, is located within one of Panama’s established agricultural regions. Its warm tropical climate, pronounced wet season, productive soils, and access to regional river systems provide favorable conditions for commercial cacao cultivation. The area’s agricultural base and proximity to Panama’s Pacific corridor further support plantation development and operations at meaningful scale.

Agroclimatic Profile

Soil type:
Predominantly loam to clay-loam
Annual precipitation:
Approx. 1,500 to 2,300 mm per year
Average temperature:
21 to 24°C night / 28 to 35°C day
Soil pH:
Moderately acidic (5.28 to 6.23 measured on site)
Altitude:
Approx. 50 to 150 meters above sea level
Organic matter:
Approx. 4.1% to 6.7% measured on site
Relative humidity:
Approx. 80 to 85%
Cadmium levels:
0.00847 to 0.0284 mg/L across site soil samples

The region's extended dry season (December through April) is managed through the project's fully automated fertigation infrastructure, which provides precision water and nutrient delivery independent of rainfall variability. Bi-oceanic port access via the Panama Canal facilitates cost-effective export to European and North American specialty markets.

Current Status and Site Progress

The project is already in motion. Key milestones as of mid-2026:

01

Nursery and plant production

Year 1 plants in active germination, grafting, and early growth at SEPLASA. MIDA-certified ICS-95/IMC-67 hybrid grafted varieties. Nursery capacity confirmed at over one million plants annually.
03

Infrastructure

Drip fertigation system design and layout in progress. Greenhouse and supporting infrastructure in place.
02

Land transformation

Pasture clearing and land grading underway. Drainage canal excavation and dredging in progress. Soil treatment and pH correction initiated.
04

Land MOU

Signed MOU with the landowner in Sona.

Agronomy and Infrastructure

The project is designed as one of the most technically advanced cacao plantations in Latin America, integrating precision agriculture, automated irrigation, regenerative soil management, and disease-resistant genetics.

Genetic Material and Seedling Production

All planting material is produced by SEPLASA, Panama's MIDA- and OIRSA-certified nursery. The project uses grafted fine-aroma cocoa seedlings from internationally recognized rootstocks and varieties:

• Rootstocks: UF-12, EET-400, IMC-67, ICS-95
• Varieties: R1, R4, R6, CC-137, TSH-565, EET-95, ICS-95, IMC-67
• Quality: Fine Aroma (Theobroma cacao)
• Resilience: Varieties selected for tolerance to key fungal diseases including Moniliophthora and Phytophthora palmivora
• Grafting schedule: Seedlings ready in month 4, planted at the start of the rainy season (June to July)

Precision Fertigation System

The plantation employs a fully automated drip fertigation system, eliminating reliance on rainfall for nutrient and water delivery:

• Emitters: Pressure-compensating, anti-siphon, 2 L/h per plant
• Filtration: Sand media filter (120 mesh) plus disc filter (130 mesh)
• Fertigation tanks: 3 x 5,000L for nitrogen/calcium, potassium/magnesium/micronutrients, and pH adjustment
• Control: SCADA platform with LoRaWAN field controllers, remote monitoring, and automated alarms
• EC/pH sensors: Real-time closed-loop nutrient control targeting EC 1.2 to 1.8 dS/m and pH 5.8 to 6.2
• Irrigation schedule: 3 to 5 pulses per day, 4 to 6 mm per day based on local weather station data

Land Preparation and Soil Management

• Topographic survey: LiDAR and satellite-derived digital elevation models at 0.5m resolution
• Soil amendment: 20 t/ha composted cocoa pod husks plus 10 t/ha chicken manure, incorporated by deep ripping to 0.6m depth
• Green manure: Crotalaria juncea cover crop (60-day cycle) to build nitrogen and organic matter prior to planting
• Target organic matter: above 4% in top 30 cm (from approx. 1.5 to 2% baseline in degraded pasture)
• Planting beds: Precision-engineered raised beds oriented east-west to maximize solar interception

Phase Implementation Plan

• Phase I (800 ha): Land clearing, soil prep, drainage, irrigation install, first planting. $36.5 million raise. Target close Q3 2026.
• Phase II through IV: Parallel and sequential build-out through 2032, expanding to 2,150 net planted hectares
• Phase I first harvest: Year 3 from planting (500 to 800 kg/ha dry beans)
• Phase I full production: Year 5 (approx. 3,200 kg/ha dry beans at maturity)
Agronomy and Infrastructure

Genetic Material and Seedling Production

Precision Fertigation System

Land Preparation and Soil Management

Phase Implementation Plan

Market Opportunity

Global demand for fine-aroma cacao is growing at a structural pace driven by consumer premiumization, corporate procurement mandates, and regulatory pressure on supply chain transparency. Fine-aroma cacao represents only 5% of global production but commands a significant price premium above the commodity benchmark, driven by demand from specialty chocolate manufacturers, premium confectionery companies, and institutional buyers seeking traceable, high-quality supply.

Structural Supply Gap

More than 70% of global cocoa supply originates in Ivory Coast and Ghana, two countries facing compounding and correlated risks. Global production fell 12.9% in 2023/24, the most severe shortfall in decades. The EU Deforestation Regulation, enforced from December 2025, requires full deforestation-free documentation for all cocoa entering European markets. Institutional buyers are actively seeking geographically diversified, certifiably deforestation-free sources outside the West African risk corridor.
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Revenue Streams

The project generates revenue through two channels:

• Primary: Premium fine-aroma cacao bean sales into specialty and institutional markets, priced at a significant premium to commodity cocoa. Cacao revenues are the primary and sole source of Debt repayment.

‍• Supplemental: Sovereign-authorized carbon sequestration mitigation outcomes. Carbon distributions occur only upon verified outcome delivery and Panama government authorization under Article 6 of the Paris Agreement.
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Carbon Sequestration
Supplemental Outcome
Aegean American is developing a large-scale fine-aroma cacao afforestation platform in Panama, on 3,750 usable hectares of formerly degraded cattle pastureland.
This offering is structured as a Green Outcome Bond (GOB), a dual-instrument security that goes beyond a conventional green bond.
Panama offers a combination of attributes that few jurisdictions can match for a project of this profile.
The global cocoa market is valued at approximately $10 to $12 billion. The premium, traceable, and fine-flavor segment represents roughly $2 to $3 billion of that total.

The conversion of degraded cattle pasture to a perennial cocoa agroforestry system generates measurable carbon sequestration through above-ground biomass accumulation, root systems, and improvements in soil carbon. The Natural Capital Outcome Bond structure allows investors to participate directly in the economic value of these outcomes once they are verified and sovereign-authorized, as a contingent supplement to cacao cash flows.

Scientific Basis

Research by FAO, World Agroforestry (ICRAF), CATIE, and CIFOR consistently demonstrates that shaded cocoa agroforestry systems sequester 80 to 200 tCO2e per hectare over a 25 to 30-year cycle. At project scale, estimated annual sequestration at Phase1 is approximately 20,250 tCO2e per year, with 130 to 160 tCO2e per hectare projected over a 30-year lifecycle.

Certification Pathway
(Undecided)

• Verra (VCS): Verified Carbon Standard, under an afforestation/reforestation/agroforestry methodology
‍
• Gold Standard: Supports agroforestry and community-inclusive models

Panama's national carbon market framework (Executive Decrees No. 100/2020 and No. 142/2021) and the Mercado Nacional de Carbono de Panama (MNCP) provide the institutional regulatory basis. International transfers comply with Article 6 of the Paris Agreement and require appropriate governmental authorization.

Important Disclosure

Carbon credit volumes and revenues are indicative estimates based on agronomic literature and preliminary modeling. Final quantification depends on baseline studies, methodology selection, third-party validation, and regulatory approvals. Carbon revenues are not modeled as a debt service assumption in the base case financial projections.

Impact

The Panama Cocoa Afforestation Project generates measurable environmental and social co-benefits aligned with institutional mandates and the UN Sustainable Development Goals.

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Environmental

• Conversion
• Estimated carbon sequestration
• Biodiversity restoration
• Improved soil health
• Deforestation-free supply chain
• Sustainable water management
Environmental Impact
• Conversion: of 750 hectares of degraded cattle pasture to productive agroforestry
• Estimated carbon sequestration: 20,250 tCO2e per year at Phase 1 (pre-certification); 130 to 160 tCO2e per hectare over 30 years
• Biodiversity restoration through multi-layer canopy systems (cocoa, shade trees, and understory)
• Improved soil health: organic matter, water retention, and microbial activity increase materially across the plantation lifecycle
• Deforestation-free supply chain: no primary forest cleared; land-use history is degraded pasture with a 25-plus-year documented baseline
• Sustainable water management: closed-loop fertigation reduces water waste and prevents chemical runoff 

Social and Community

• Rural job creation
• Technical skills development
• Community engagement
• Support for Panama's national agricultural and climate strategies
Social and Community impact
• Rural job creation of 1,500-plus jobs created in La Soledada, Soná district, across plantation phases
• Technical skills development and agricultural training for local workforce
• Community engagement in La Soledad and surrounding communities in Soná District
• Support for Panama's national agricultural and climate strategies

SDG Alignment

• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 15: Life on Land
• SDG 1: No Poverty
• SDG 10: Reduced Inequalities
SDG Alignment
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 15: Life on Land
• SDG 1: No Poverty
• SDG 10: Reduced Inequalities
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Project Snapshot

Location:

La Soledada, Soná district, jurisdiction of Veraguas Province, Panama

Variety:

Fine-Aroma Cacao (ICS-95 / IMC-67)

Infrastructure:

Drip fertigation, centralized fermenters, dryers

Phase I:

750 net planted hectares

Current status:

Site preparation and nursery production active

Phase I close:

Q3 2026

Planting density:

1,180 trees per hectare

Target raise:

$36.5 million (Phase I)