Britain’s very first council solar bond is set for launch tomorrow and is looking for investors to get on board with their project. Their venture located in Swindon, Wiltshire, will be offering its investors a six percent return over a twenty-year term. What makes this proposal so intriguing, is the abundance of investment opportunities and the possibility of large returns.
This new bond is set to fund construction of the site. The likely funding break down will see $3 million put forth by the council and the remaining $1.8 million coming from investors. This will make the investment highly intriguing due to joining of the council’s funding. Many will see this investment as a low-risk opportunity. The project could be the perfect investment for people looking for big returns.
So, how and when will the investors see return on their investment? Money will be generated by electricity sold to the grid. And, payouts are likely to occur twice yearly in cash. If you invest in the first six weeks, you will receive a 0.5% early bird boost to returns as noted here. For some, this deal combined with its potential, may be too good to pass up.
Not only is this a huge investment opportunity, the bond’s set-up could become the way of the future. As mentioned above, the council’s tie-in may lead to future bond constructs. This will more than likely lessen the burden on the local taxpayers. In addition, the Swindon Borough Council is committed to generating electricity for all homes in the area by the year 2020, making this a relatively quick turnaround for its investors.
Swindon Borough Council Cabinet Member, Dale Heenan said, “For years, companies have been trying to find ways to make investing more accessible and understandable. Swindon’s solar bonds provide an opportunity for people to invest (a small amount of money) and enjoy better returns than their bank provides as they invest for their children’s future, their own retirement or just a rainy day.”
Heenan continued by saying, “Our approach is democratic finance in action, and the combination of personal benefit, environment issues and community involvement provides a topical way to catch imaginations, and help improve personal finance skills in a simple, easily understood way.”
Another bonus for investors is knowing that they will be partnering with Abundance Investment. Their track record speaks for itself with more than $39 million raised by their investors as referenced here.
Adding to Heenan’s comments, Managing Director of Abundance, Bruce Davis said: ‘This first ever council solar bond is exciting and important as it is further proof that a win-win investment is not only possible, but can play a crucial role in providing the public with a better return, while creating innovative new ways for local community infrastructure to be improved without increasing costs to the taxpayer.”
Abundance has raised more than $15 million with various renewable energy projects in just three years, so investors may salivate at this new opportunity. Whether or not this venture is as successful as other recent projects is yet to be seen. But, based on every factor at play, it looks to be a winner for both the investors and the community.