Ecobonds Return after Debut Success with ecobond two
- Published: Friday, 02 December 2011 07:44
Following the success of Ecotricity’s radical green investment bond last year, the UK’s largest independent green energy company is launching ‘ecobond two’ – allowing investors to share in the benefits of the green energy revolution here in Britain.
When ecobond one was launched in October last year, it was over subscribed by 50% with investors seizing the opportunity to invest £10 million in Britain’s green energy future.
ecobond two is also seeking £10 million using the same innovative platform that bypasses the banks and allows people to share in the benefits of the green energy revolution “without needing to stick anything on their roof”.
The fixed rate ecobond two will have an initial four-year term and pay an annual rate of interest of 6% (or 6.5% for Ecotricity customers). The bonds are open to UK-based individuals, companies, trusts, charities and other legal entities and are subject to a minimum £500 investment. ecobond two will be issued by Ecotricity Bonds plc, a wholly-owned subsidiary of the Ecotricity Group Limited (Ecotricity), which has guaranteed the payment obligations of Ecotricity Bonds plc for ecobond two.
Ecotricity is an entrepreneurial green British business, leading the way in green energy production & supply and committed to changing the way energy is made and used in Britain. Established in 1995, Ecotricity operates a ‘not-for-dividend’ model, re-investing the money from customers’ bills back into building more new sources of green energy.
They now supply green energy to over 55,000 customers from 53 windmills at 17 wind parks across the UK which, together, prevents over 50,000 tonnes of carbon dioxide going into the atmosphere every year.
The money raised from ecobond one was put straight to work funding the construction of:
UK’s first 1 MW Solar Park at Fen Farm in Lincolnshire
a third wind turbine to power Ford’s Dagenham Diesel Centre
a wind turbine at the G24i plant in Cardiff that makes solar panels.
Ecotricity has a strong pipeline of new green energy projects including 19 windmills with planning approval, waiting to be built – and a further 78 windmills for which it is seeking planning approval (that's enough to power over 100,000 homes) – and a target of having over 200MW of operational capacity in the next five years. It also intends to increase its investment in other renewable energy technologies, including wave-power and green gas made from organic waste.
Proceeds from ecobond two will be spent in 2012, alongside money from customer’s bills, building the 19 windmills that already have planning permission – increasing Ecotricity’s green energy generation by 50%.
Dale Vince OBE, Ecotricity founder, said of today’s announcement: “Ecotricity’s mission is to change where Britain’s energy comes from – to bring about energy independence and sustainability for Britain – not dependant on the global energy market.
“We operate on a unique basis – taking the money our customers spend on their energy bills and using it to build new sources of green energy.
“To accelerate that building process we launched a pioneering new type of ethical bond last year, which was an instant hit with our customers and the wider public alike.
“ecobond one raised £10 million but was massively over subscribed, with over £15 million offered by customers and the wider public.
“Funds from ecobond one funded the building of Britain’s first large-scale solar farm and two wind projects that power large British factories.
“Proceeds from ecobond two will likewise be put to work building more new sources of green energy with the aim of increasing Ecotricity’s green energy generation by 50% during 2012.
“Our ecobonds give people the opportunity to share in the financial benefits of green energy without the needing to stick anything on their roof.
“And crucially we cut out the middlemen, the banks, and pay people the same rate of interest on ecobonds that banks would charge us if we borrowed the money from them.”