Thrive Renewables launches its first ever bond to develop UK renewable energy
5-year 5.5% secured bond will provide enough clean energy for 1,350 homes
31-05-2016 | 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 withjoining 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.
- Thrive Renewables (Buchan) bond offer document
- Triodos Bank investment in renewable energy
- Background: RenewableUK State of the Industry Report 2015
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About Thrive Renewables (Buchan) Limited
Thrive Renewables (Buchan) was established in 2006 to develop early stage renewable energy opportunities in the UK and is now a wholly owned subsidiary of the Thrive Renewables plc group. The company owns and operates Auchtygills and Clayfords onshore windfarms, two single turbine projects in Strichen, Aberdeenshire with a combined capacity of 1.6 MW which are connected to the grid and have been operational since summer 2015. The two projects are expected to generate around 5,570 MWh of power each year.
About Thrive Renewables plc
Thrive renewables plc is a renewable energy group which develops, constructs and operates a portfolio of renewable energy projects. It was established in 1994 by Triodos Bank and today owns and operates 15 renewable energy projects across the UK. The combined capacity of these projects is 64 MW – enough to power around 44,000 homes. Key to the mission of the group is providing individuals with the opportunity to have a rewarding connection with sustainable energy. The group is owned by a community of around 5,700 shareholders thereby providing a means by which individuals can effectively invest directly in renewable energy generating assets. The Thrive Renewables (Buchan) Limited bond issue fits with the group’s mission to provide individuals with the opportunity to have a rewarding connection with sustainable energy.
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.
Triodos Bank Corporate Finance has published an offer document in cooperation with Thrive Renewables (Buchan) 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. Thrive Renewables (Buchan) Limited is a company registered in England (05836406 ). Registered address: Triodos Bank, Deanery Road, Bristol, United Kingdom, BS1 5AS.
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.