UK green energy company Ecotricity Group Ltd is launching a fourth series of its “ecobonds” after raising total of GBP 38 million (USD 46.3m/EUR 42.4m) in previous offerings.
The company said today ecobond four offers a gross return of 5% or 4.5% per year, depending on whether the investor is an Ecotricity customer or not.
The corporate mini-bonds allow “the wider public to invest directly and share in the financial benefits of the Company’s work”. Ecotricity founder Dale Vince pointed out that in the past 12 months the firm has topped 190,000 green energy customers, installed four new wind farms, and secured approval to build a Green Gas mill.
The ecobonds represent unsecured debt, the company noted, adding that holders are not protected against loss by the Financial Services Compensation Scheme. The mini-bonds have an initial term of five years, with a further 12 months being added automatically, subject to notice of redemption being given by the bondholder.
Ecotricity’s previous ecobond issuances include two transactions of GBP 10 million each in 2010 and 2011 and a GBP-18-million deal in the autumn of last year.
(GBP 1 = USD 1.22/EUR 1.12)
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