Aim-listed renewable energy company Good Energy Group has launched its second corporate bond with a coupon of 4.75 per cent gross a year, to be paid semi-annually.
In addition, any Good Energy customer investing in Good Energy Bonds II will be paid at maturity the equivalent to 0.25 per cent for each year of being a customer and a bondholder.
Bonds II have an initial term of four years and investments can be made in multiples of £250.
The bond is available to UK resident individuals aged 18 plus, companies, trusts, charities or other legal entities resident in the UK for corporation tax purposes.
According to Juliet Davenport, founder and chief executive of Good Energy, Bonds II are Sipp compliant.
Investors in Good Energy’s first corporate bond will be able to roll over some or all of their investment into Bonds II, receiving their existing higher interest rate until 22 November 2017, the maturity date of the Good Energy Bonds.
While some investors may be keen to support sustainable energy, this is an area where relatively few companies have prospered.Patrick ConnollyGood Energy was founded 18 years ago with the aim of helping homes and businesses to be part of a sustainable solution to climate change.
Good Energy supplies electricity throughout the British Isles from 100 per cent renewable natural resources like wind, sunshine and rain.
In 2016, the company launched its carbon neutral gas offering, and now supplies renewable electricity to over 71,400 homes and businesses and carbon neutral gas to over 44,100 households.
The company is seeking to raise £10m via a second corporate bond, up to an over-subscription maximum of £20m.
Applications for the offer are due to close on 5 June 2017.
Patrick Connolly, communications manager of Chase de Vere, said the returns from the bond appear competitive, particularly in the current low interest rate environment.
However, he said investing in a bond such as this can be high risk and so shouldn’t be compared directly with a savings account.
Mr Connolly said: “While some investors may be keen to support sustainable energy, this is an area where relatively few companies have prospered and so there is a risk that the company might not be able to achieve its growth plans.
“For most people, the extra risks involved in buying these bonds mean that, if they are used at all, it should only be for a very small proportion of an overall portfolio.”
emma.hughes@ft.com
