Community project in Scotland's Northern Highlands is working with Triodos Bank to fund local development worth £4.4 million
Coigach Community CIC, a community interest company which owns and operates a 500-kW wind turbine in Coigach, is working with Triodos Bank to raise £1.75 million through a bond issue. The new funding will be used to refinance the wind turbine asset and enable the company to donate its retained profits to the community of Coigach to fund a variety of community projects.
The turbine, christened 'Varuna', was commissioned in 2017 with the aim of providing a source of new renewable energy and a regular income stream to support the community of Coigach, which is situated on a remote peninsula in the Northwest Highlands of Scotland. Coigach has a declining population currently of around 260 and faces many challenges common to such remote communities including; a lack of affordable housing, decreasing levels of health provision and a fragile economy over-reliant on the traditional industries of crofting, fisheries and seasonal tourism.
The turbine began operating in March 2017 and benefits from the UK government's Feed-in-Tariff scheme which guarantees inflation protected income for 20 years. It has generated over 800,000 kWh of clean energy to date.
The development of the wind turbine project was led by Coigach Community Development Company ("CCDC") - a local charity established in 2010 by residents of Coigach to benefit the community. Over the next 20 years, Coigach Community CIC expects to generate surpluses of around £4.4 million after paying operating and finance costs. 100% of these profits will be donated to CCDC to fund projects which help to develop affordable housing, bring employment or work space into the area, develop transport links and amenities or conserve the natural area. One such project is the re-development of the community's harbour facilities to support the local fishing fleet.
The bonds will be secured by way of a first legal charge over the wind turbine asset and will pay interest of 5% a year increasing annually in line with inflation. The bonds will be redeemed in instalments over 12 years and can be bought on Triodos Bank's investment crowdfunding platform. The bonds are eligible to be held in an Innovative Finance ISA which means interest can be received tax free.
Iain Muir, director of Coigach Community CIC, said:"Community energy is a great way of generating funds for the benefit of the local community. By supporting our wind turbine project, investors are not only investing in an operating asset and the generation of renewable energy but can also be assured that they are also helping us to tackle some of the most pressing issues our community faces.
"Triodos Bank is a natural partner for us as they combine financial and renewable energy expertise with a commitment to business as a means of benefiting the community."
Dan Hird, Head of Corporate Finance at Triodos Bank, said:"To tackle the big issues we face today we need to inspire ordinary investors to support progressive and credible community led businesses. This bond issue perfectly aligns with our mission at Triodos Bank to make money work for positive social, environmental and cultural change."
For more information and to register interest and receive alerts each time a new offer goes live, visit www.triodoscrowdfunding.co.uk.
An investment in Coigach Community CIC's bonds is not covered by the Financial Services Compensation Scheme. Coigach Community CIC's ability to pay the interest and repay the bonds is not guaranteed and is dependent on the continued success of its business model. Coigach Community CIC's' bonds are not listed on a recognised investment exchange, so investors should be prepared to hold the bonds for their full term. Like all ISAs, IFISAs are subject to eligibility requirements.
Notes to Editors:
Coigach published an offer document dated March 2018. Applications can only be made on the basis of, and subject to, the terms and conditions of the information contained in the offer document which includes the bond instrument and the terms and conditions of the Triodos Crowdfunding website. Coigach Community CIC is a company limited by shares and a community interest company, registered in England with registered office at Pannone Corporate LLP, 378-380 Deansgate, Manchester M3 4LY (registered number 09638437).
For further information please contact:
T : 01854 622379
About Triodos Bank
Triodos Bank is a global pioneer in sustainable banking using the power of finance to invest in projects that are good for people and the planet. Triodos uses its €14.5 billion (2017) in assets to create social, environmental and cultural value in a transparent and sustainable way.
With UK operations based in Bristol, Triodos Bank has branches in the Netherlands, Belgium, Spain, Germany and an agency in France. Globally, Triodos Bank has microfinance projects in Central Asia and Eastern Europe, and is a founding member of the Global Alliance for Banking on Values (GABV), a worldwide network of 43 banks seeking to transform finance into a vehicle of positive influence.
Triodos Bank NV (incorporated under the laws of the Netherlands with limited liability, registered in England and Wales BR3012). Authorised by the Dutch Central Bank and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request. Firm reference number 183366.
Investments offered on the crowdfunding platform are not readily realisable, which means that they may be difficult to sell and you may not get back the full amount invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and your capital is at risk and returns are not guaranteed. Repayment of capital and interest or payment of dividends will be dependent on the success of the organisation's business model and past performance isn't a reliable indicator of future performance. You should always read the offer document in full before deciding whether or not to invest as it will cover risks specific to an individual investment. You can read more about the general risks associated with making these types of investments here. If you are unsure if any of these investments are right for you, you should contact an Independent Financial Adviser.