5-year 5.5% secured bond will provide enough clean energy for 1,350 homes
Thrive Renewables (Buchan) Limited has launched its inaugural bond to help further the development of sustainable energy assets in the UK. Already one of the most widely owned renewable energy companies in the UK, the Thrive Renewables group is actively growing the investment base for the sector by offering a minimum investment of £250. The £3 million raised by this bond issue will enable the group to further invest in new sustainable power initiatives, allowing investors of all types to have a direct stake in the growing domestic renewable energy sector.
While most renewable energy bonds are to finance the construction of new projects, the 5.5% Thrive bond is secured against two operational single-turbine wind farms located close to Strichen in Aberdeenshire with a combined capacity of 1.6 MW. The turbines began operating in 2015 and are expected to generate around 5,570 MWh of power each year from 2016 – enough to power around 1,350 homes each year.
“This bond is a unique opportunity because it offers the chance to combine a financial return with joining the Thrive Renewables community as we tackle natural resource scarcity”, says Simon Roberts, Chair of Thrive Renewables plc. “It also provides an accessible way for investors to contribute to continued growth of renewables in the UK. We hope that people living close to the wind projects in Strichen will participate in the Bond offer.”
The offer is open to both new investors and existing shareholders and the bonds will be tradable to any willing buyers on a matched-bargain market operated by Ethex, a not-for-profit web-based investment platform.
The two wind farms against which the bond is secured are operated by Thrive Renewables (Buchan) Limited, a wholly-owned subsidiary of Thrive Renewables plc. Both projects are pre-accredited for the UK Government Feed-in Tariff scheme for renewable energy which guarantees an income stream for 20 years.
The five year bond will pay interest of 5.5% gross per year, fixed and payable (net of UK basic rate tax) annually in arrears on 15 July in each calendar year. Payment of interest and repayment of capital is dependent of the continued successful operation of the Auchtygills and Clayfords wind farms. In the event that Thrive Renewables (Buchan) Limited is unable to pay bond interest or repay the capital, bondholders will have no recourse to Thrive Renewables plc.
“Thrive Renewables is one of the most established and widely-owned renewable energy companies in the UK, operating successfully for 20 years under the name of Triodos Renewables”, says Dan Hird, head of Triodos Bank Corporate Finance. “This secured bond issue represents an opportunity for individuals to invest directly in two operational windfarms and combine a financial return with positive environmental impact.”
An investment in Thrive Renewables (Buchan) Limited bonds is not covered by the Financial Services Compensation Scheme. Thrive Renewables (Buchan) Limited’s ability to pay the interest and repay the bonds is not guaranteed and is dependent on the continued successful operation of the Auchtygills and Clayfords wind farms. Thrive Renewables (Buchan) Limited bonds are unquoted securities with fixed repayment dates and although the bonds are transferable, investors should be aware that they may not be able to access their capital during the life of the bond.