For those comfortable with the risks associated with unlisted retail bonds it is now possible to take a portfolio approach to the ‘mini’ bond market. There are a host of ‘mini bonds’ coming to the market.
A Shade Greener Money Ltd recently launched their £10m Greener Bond offer financing residential solar and domestic boilers and now Good Energy PLC, the AIM listed electricity supplier, follow their electricity rival Ecotricity into the retail bond market with a £5m offering to finance wind and solar farms.
What is the offer?
This is a 4 year bond offering interest at 7.25%, plus a 0.25% bonus per annum for customers registered with them on the 1st January each year. While the initial target is for £5m, the offer document allows for up to £15m to be raised and if the experience of Ecotricity is anything to go by Good Energy PLC will be able to move forward a few more renewable projects than anticipated.
About Good Energy
Good Energy PLC was founded by Juliet Davenport 1999 and has gone from success to success, recently moving through 100,000 domestic customers and reporting operating profits in the year to 31st December 2012 of £2.025m. For those keen to support the Green economy this is a very strong offering from a company with a substantial balance sheet and a proven track record of raising money in the capital markets.
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