The public has so far invested over £4 million in Bristol Energy Cooperative’s clean energy projects.
Our latest investment opportunity is via a bond – an Innovative Finance ISA bond. This is one of the first available for community energy, and below are the answers to some of the questions that we’ve been asked about it. Why is Bristol Energy Cooperative raising money?
Our bond offer will to repay loans to Bristol City Council and Close Brothers as part of our previous fundraise.
But more excitingly for us, the money will help us develop our first community-owned battery storage project using Tesla battery technology.
2/ How long is the money invested in the bond?
The bond offer is for 3 years.
3/ What is the interest rate?
The unsecured bond pays fixed returns of 4.5% per annum.
4/ What is an Innovative Finance ISA (IFISA)?
The Innovative Finance ISA was launched by the UK government in 2016 to recognise the growing role that peer-to-peer lending is having in bringing investors and borrowers together outside of the mainstream banking sector. It enables investors to hold peer-to-peer loans, mini-bonds and other approved debt instruments in a tax-free ISA.
Further information on the IFISA is at: https://www.mongoosecrowd.co.uk/ifisa
5/ How much can I add to the IFISA?
The IFISA allows you to subscribe up to £20,000 in the 2017/18 tax year, and you can reinvest any returns you earn without being taxed.
In addition, if you have already built up tax-free savings in Cash or Stocks & Shares ISAs in previous tax years, you can transfer some or all of these funds to an IFISA.
6/ I’ve used up my ISA allowance. Can I still invest?
Yes, if you have used up all your ISA allowance for the tax year, and don’t wish to transfer existing ISAs, you can still invest in our bonds. In this case the interest you earn on them will not be tax-free.
If you invest in the bond without the ISA wrapper, there is a minimum investment of £100 and a maximum of £100,000.
7/ Where can I invest?
Our partners Mongoose Energy have recently launched their own crowdfund platform, Mongoose Crowd to make investing in community energy easier. We’re delighted to launch our new bond offer on this portal.
All applications for the bond are made online.
8/ How much money are you seeking to raise?
The target is £1,150,000. Unlike some crowdfunds, there is no minimum target.
9/ How long do I have to invest in the bond?
The closing date for the bond offer is 31 August 2017.
10/ It’s a community energy bond, but how does it help the community?
Bristol Energy Cooperative is powered by the community, for the community. An investment will help provide more renewable energy to help tackle climate change and offer a cleaner, more sustainable future for all of us. In addition, surplus profits are re-invested into community projects.
We also have solar panels on 11 community roofs around Bristol; this helps the organisations reduce their energy bills so they have more money to spend on their priorities. It’s win-win-win.
We hope this has been helpful. Further information is available on the FAQ page on Mongoose Crowd:
Over £450,000 has been invested in the bond offer so far, but we need your help to reach our target. We hope you’ll consider getting involved too, and join the clean energy revolution.
If an investment isn’t for you right now, please do share the bond offer with friends and family today.
Note, that investing in this bond puts your capital is at risk. This means that you may lose some or all of the money that you invest. Read the full offer document, understand the risks and agree with the terms before investing. To find out more about our bond offer go to www.mongoosecrowd.co.uk
Any financial promotion contained herein has been issued and approved by Sharein Limited; a firm authorised and regulated by the Financial Conduct Authority (“FCA”). It is for informational purposes and is not an Official confirmation of terms.