Caveat Emptor: The Next Retail Bond from EnergyBonds

Energy Bond PLC is issuing a £7.5m bilateral loan agreement (Energybonds) to retail investors at an interest rate of 7.5%. The loan is intended to finance a 3.5MW solar project and other clean energy projects, but the holding company is constantly cash constrained and there is no representation on the Board of the issuing company for the loan note holders. In the past I have had reservations about the Ecotricity bond and this also is very much a case of buyer beware…

Background

This Invitation does not constitute an offer of transferable securities to the public and accordingly this Invitation does not constitute a prospectus to which the Prospectus Rules of the Financial Conduct Authority apply. It is therefore available to all retail investors. Here we try and help investors understand some of the risks they are taking on by lending money to the CBD Energy Limited (“CBD”).

The brief dynamics of Energybonds are:

• Coupon: 7.5% per annum.
• Interest Period: Interest will be paid quarterly.
• Subscription: Minimum amount of £500 and multiples thereof – no upper investment limit.
• Maturity: 4 year initial term.

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