Local community energy enterprise, Bath & West Community Energy (BWCE), has just launched its latest green energy bond offer – and for the first time, investors from Bath and the surrounding areas will be able to buy community energy bonds in a tax-free ISA wrapper.
As well as an expected return of 5% a year for five years, the bond offers lower environmental impact and positive social dividends as any profits are reinvested back into the local community. BWCE is looking to raise £1 million through the bond offer. An investment can be made with as little as £200 and the offer closes on 31 July 2017 or earlier if oversubscribed. The bond offer will support the refinancing of solar projects near Bath to enable BWCE to develop other clean energy projects in the region.
This is a particularly exciting development in BWCE’s fundraising as the bonds are eligible for the new Innovative Finance ISA (IFISA) ‘wrapper’ up to a £20,000 limit. This means that all the interest earned by IFISA investments will be tax-free.
The bond is available from the newly formed crowdfunding platform Mongoose Crowd, the UK’s first dedicated community energy crowdfunding platform and an appointed representative of Share In Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA).
The money raised will be used to replace an existing commercial loan of £700,000 and provide a small amount of capital to take advantage of future clean energy opportunities.
Peter Capener, Executive Director, Bath & West Community Energy, said, “We are very excited about being able to offer the UK’s first ISA-eligible community energy bond on Mongoose Crowd. The commitment and enthusiastic support from our members and bondholders has been the foundation for our success to date. We hope that even more people will want to get involved in helping us build a powerful community response to our energy needs that makes sound sense for people’s pockets and for the planet.”
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