Published on April 3rd, 2014 | by Guest Contributor3
CBD Energy Targets Further Bond-Funded Solar Installations In UK
Editor’s Note: This is a very interesting offer that allows UK investors to take part in the growth of solar schools across the country. A very exciting offer that benefits many parties. Have a look and consider investing if it’s an option for you!
Global renewable energy firm CBD Energy (‘CBD’) will be launching another tranche of Energy Bonds in the weeks ahead, creating an opportunity for UK investors to enjoy an annual income of 6.9%.
Independent Portfolio Managers Limited, a firm authorised and regulated by the Financial Conduct Authority (FCA), will again be appointed as the security trustee and to sit on the board of the issuing company, so that the bondholders have their own representative on the board overseeing their investment interests at all times. As further security to protect bondholders, parent company CBD is providing a corporate guarantee on the investment.
Through the security trustee, bondholders will hold security over all of the assets of the issuing Company, including the Company’s income and cash reserves; this means that if for any reason the Company is unable to pay the Bond’s quarterly income payments, the security trustee, for the benefit of bondholders, will gain control over the assets until the bondholders are fully repaid.
Funds to be raised by this new offer are to be invested in the development and installation of solar projects, right across the UK. The plans are to install solar panels on a wide range of UK businesses without direct cost to the businesses involved, with the income from the government’s Feed-in Tariff (FiT) for clean, green electricity generation and the sale of electricity being used to deliver a return on investment.
Since launching the last tranche of Energy Bonds through Secured Energy Bonds Plc (“SEB”), SEB has been granted the rights to develop rooftop solar installations on 22 UK schools, and will be providing each school with low-cost solar power. Indeed the savings on each school’s electricity bill are likely to be as much as 20%, enabling these schools to channel their limited financial resources into other priority areas, such as books and equipment.
SEB estimates these schools will achieve a combined annual carbon emissions reduction of more than 560 metric tonnes. These projects are protected by a 25 year power purchase agreement (‘PPA’). This is a great way of introducing our children to the importance of clean-tech energy solutions and should lead the way for other schools to join the clean energy movement in the future.
UK schools and businesses are in a win-win situation, gaining access to cleaner energy, and at the same time, a reduction in running costs. This programme of installations is paving the way for the adoption of solar technology in the UK at a time when meeting the Government’s commitment to a reduction in carbon emissions by up to 32% by 2020 is firmly in the spotlight.
The new tranche of Energy Bonds aims to pay investors an annual coupon i.e. income of 6.9%, paid quarterly, on this basis investors would receive an income of 1.725% on their investment every quarter. This equates to an annual income of £138 on every £2,000 invested for the five year investment term.
CBD Energy’s secured retail investment bond offering in solar energy is only the second of its kind available in the UK market and represents a significant move towards a cleaner, greener future.
This article has been supported by CBD Energy.
Image: rooftop solar installation via Shutterstock
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