Good Energy launches 7.25% corporate bond
Good Energy, the 100% renewable electricity supplier, has launched its first corporate bond to support further investment in clean energy projects.
The firm, which was named the best green energy company by Ethical Consumer in July, is the first listed company (AIM) to launch this type of bond. It is hoping to raise £5 million to increase its solar and wind generation capacity and to accelerate the build-out of its UK renewable energy project pipeline.
The bonds have an initial term of four years and will offer investors a coupon of 7.25% per annum, paid half-yearly. In addition, any Good Energy customer or generator investing in the Good Energy Bonds will be paid at maturity the equivalent to 0.25% for each year that they are both a customer and a bondholder
Juliet Davenport, founder and CEO of Good Energy, said, “We are delighted to launch the Good Energy Bonds, the proceeds of which will be used to strengthen our balance sheet and to help us to accelerate the build-out of our pipeline of UK renewable energy projects. This is increasingly important as we look to meet our commitments to our rapidly expanding customer base.
“We believe this product provides investors and customers with the opportunity to be a part of the development of the UK’s green energy market and Good Energy’s expansion in particular, while also providing a yield backed by a Group which has a strong financial track record.”
Applications for the bond will close on 13 November.
On Monday, Good Energy celebrated a major landmark after welcoming its 100,000th customer.
The supplier is also preparing for the unveiling of a new wind farm, currently under construction in Hampole, near Doncaster. Once completed, the site will increase Good Energy’s generation by 100%. Local residents will benefit from a 20% discount on energy bills.
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