Ecotricity launches second ‘Ecobond’ issue
Green investment news - by GreenWise staff
5th November 2011
Green energy company Ecotricity will today launch a second issue of its popular 'Ecobonds’.
Ecotricity is seeking to raise £10 million through its '
Ecobond Two’, which will enable customers and non-customers of the UK’s largest
renewable energy company to invest directly into building new sources of green energy in the UK. When Ecotricity launched its first Ecobond issue in October last year, it was heavily oversubscribed, exceeding its £10 million target by 50 per cent. It became the UK’s largest ever private bond issue.
Ecotricity is expecting 'Ecobond Two’ to also be a hit with UK citizens looking to invest in green energy at a time when other small-scale
renewable energy investment vehicles are looking shaky.
"This might prove an attractive option for people who want to be green and also get an attractive rate of return, but can’t – or don’t want to – put solar panels on their roof, especially in light of this week’s Feed-in Tariff (FiT) rates fiasco," said a spokesperson for Ecotricity.
Ecobond Two will provide a four year fixed rate of return of 6.5 per cent for existing Ecotricity customers or new customers. Individuals that are not Ecotricity customers will get a return of six per cent.
Although lower than last year’s 7.5 per cent rate of return, it would be higher than the 4.5 per cent to five per cent rate of return households and businesses would receive through their own FiT solar installations under the Government’s
proposed cuts to be introduced in a matter of weeks.
Ecotricity said the money raised from Ecobond Two would be spent on building 19 new windmills that already had planning permission. Last year’s bond issue raised money for a solar park and wind turbines at two UK factories.
"Proceeds from Ecobond Two will […] be put to work building more new sources of green energy with the aim of increasing Ecotricity’s green energy generation by 50 per cent during 2012," said Ecotricity founder Dale Vince.
The bond issue will close on December 16.
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