Published on April 3rd, 2014 | by Sponsored Content


CBD Energy Targets Further Bond-Funded Solar Installations In UK

April 3rd, 2014 by  

Rooftop solar PV installers

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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  • Let me get this straight. SEB wants investors to give them money upfront on yet-to-be-developed projects, in return for “mini-bonds” that are secured by these yet-to-be-developed projects? And SEB is owned by CBD Energy, a company delisted from the Australian Stock Exchange due to a “restructuring”? I see SEB raised over £7,500,000 last December. Where is the money now? Where are the projects? Where is the reporting?
    Is this for real?

  • Ronald Brakels

    Here in Australia while about half of schools have some PV installed it’s only enough to meet about 2.4% of school power consumption (nearly 5% in the schools with solar) and I think installations have pretty much stopped. Given the low cost of solar PV right now it seems kind of nuts not to be rapidly installing more. Of course since schools spend so much of the time empty, what with classes finishing at about 3:30 pm and about 200 school days in a year, the low to zero cents a kilowatt-hour feed-in tariff they face hurts the economics of solar. But even so, given the low cost of capital schools have when they do get capital, with a feed-in tariff of 8 cents a kilowatt-hour school rooftop solar should still be a money saver. However, putting solar on government buildings that are occupied until 5:00 pm for 350 days a year would be a bigger money saver. (When you add in the value of saving the planet it’s all good, but many people don’t do that.)

  • JamesWimberley

    It’ s not quite clear, but it looks as if these are ordinary public-sector schools, with financial autonomy but no endowments. A captive market.

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