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£2.5 million bond launched to build hydro project that will benefit fish stocks in the river Ouse

• Forecast to generate enough clean, green electricity to power the equivalent of 450 homes. • Offering gross fixed interest of 7.5% per year for 10 years. • Minimum investment of £2,000 or £400 for local investors[1].

23-05-2016 |  

Working in partnership with the corporate finance team at Triodos Bank, Linton Hydro Ltd (‘Linton Hydro’) today launches a £2.5 million secured bond issue to develop a hydro power scheme on the River Ouse in North Yorkshire. The bond will pay 7.5% gross annual interest for 10 years. The money raised will be used to finance the development of a 280 kW hydro power scheme at Linton Lock on the river Ouse and to acquire an adjacent 100 kW operational hydro power scheme. It is anticipated that the Linton Lock scheme will be completed and generating electricity by the first quarter of 2017 and once operational, the two projects are forecast to generate a combined 1.87 GWh of electricity – enough to power 450 homes equivalent[2] . The two schemes combined represent the largest hydro project in Yorkshire and use the largest Archimedean screw turbine in the world.

Dave Mann, Director of Linton says: "This project generates a positive impact on a number of levels. It allows us to harness the power of the river Ouse to produce a significant amount of clean renewable electricity as well as building new modern fish passes and a canoe pass at Linton Lock in partnership with Canoe England"

Local kayaker Sam Ellis is a supporter of the scheme: "Paddling is my life and this project could seriously improve the sport in the UK. In the past, I’ve been an objector to hydro schemes. But the Linton project will create green energy while improving local paddling and fish migration at the same time: it’s a triple-win. Linton Hydro reflects my values and is exactly the type of thing that I would want to invest in."

Environmental benefits

The Linton Lock scheme will bring additional environmental benefits to the river Ouse through the installation of a series of modern fish passes alongside the new turbine. Currently migratory fish species struggle to progress upstream to their historic spawning grounds due to difficulty in passing the lock. An existing dilapidated fish pass at the lock will be refurbished and three new modern fish passes installed as part of the scheme which will significantly improve the migration of salmon, sea trout, brown trout, lamprey and eels in the river.

Local benefits

The Linton Lock scheme is pre-accredited for the Government’s Feed-in-Tariff scheme for renewable energy and will also sell electricity to a local free range chicken farm at a mutually beneficial price with any surplus being sold to the national grid. The existing 100kW operational project already has a power purchase agreement in place with LoC02 Energy, an independent sustainable energy provider.

Dan Hird, head of Triodos Bank Corporate Finance, comments: "The Linton Lock hydro power scheme is a great example of a renewable energy project which will benefit both local businesses and the environment to achieve sustainability. We are delighted to make this investment opportunity available to individual investors who want to combine a financial return with positive local and environmental impact."

Repayments

Linton Hydro will repay investors’ capital in eight equal annual instalments from the third year, with the first instalment payable on 30 June 2019 and the final instalment payable on 30 June 2026. The bond will pay interest of 7.5% gross per year on the capital outstanding. Payment of interest and repayment of capital is dependent of the successful construction and operation of the new scheme and the continued successful operation of the existing scheme.

The Linton Hydro shareholders have already invested £494,000 of capital into the schemes and this will remain in the company as equity until the secured bonds are repaid in full.

An investment in Linton Hydro Ltd bonds is not covered by the Financial Services Compensation Scheme. Linton Hydro Ltd’s ability to pay the interest and repay the bonds is not guaranteed and is dependent on the success of its business model, in particular the successful construction of the new hydro scheme at Linton Lock and the continued successful operation of the existing 100kW hydro scheme. Linton Hydro Ltd 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.

ENDS-

Notes to editors:

For general enquiries, please contact Huw Thomas on 0117 980 9593 or

investments@triodos.co.uk

For media enquiries please contact the Triodos Bank Communications team:

William Ferguson, T 0117 980 9770 or M 07899 965 640

william.ferguson@triodos.co.uk Chris Yong, T 0117 980 9721 christopher.yong@triodos.co.uk

About Linton Hydro Ltd

Linton Hydro Ltd was established in 2016 to develop a new pre-accredited 280 kW hydro power scheme at Linton Lock at Nun Monkton on the river Ouse in North Yorkshire and to acquire an operational 100kW hydro scheme. Linton Hydro Ltd was founded by four directors who have significant experience in the development and construction of hydro power schemes, with complimentary backgrounds in civil engineering and fisheries science and hydro technology.

About Triodos Corporate Finance

Triodos Bank is one of the world's leading sustainable banks. Its advisory arm, Triodos Corporate Finance, works exclusively with sustainable businesses and has a long track record of advising businesses on raising capital through private placements and retail offers. Over the past five years, Triodos Corporate Finance has raised over £75 million for businesses within the sustainability sector with investments from institutions, charitable foundations, high net worth individuals and retail investors.

www.triodos.co.uk

Triodos Bank Corporate Finance has published an offer document in cooperation with Linton Hydro Ltd dated May 2016. Applications can only be made on the basis of, and subject to the terms and conditions and other, the information contained in the offer document and accompanying application pack. Linton Hydro Limited is a company registered in England (10141737). Registered address: Woodwater House, Pynes Hill, Exeter, United Kingdom, EX2 5WR.

This financial promotion has been issued and approved by Triodos Bank NV, incorporated under the laws of the Netherlands with limited liability, registered in England and Wales with branch number BR3012, authorised by the Dutch Central Bank (DNB) and regulated in the UK by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Details about the extent of our regulation by the FCA and PRA are available from us on request. Registered office: Triodos Bank, Deanery Road, Bristol BS1 5AS.

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