Burnham and Weston Energy CIC
Burnham and Weston Energy CIC owns one of the largest community solar farms in the UK. The 9.3MW solar
farm has been generating electricity since June 2016 and generates the equivalent of the annual electricity consumption of around
2,000 homes.
Around £3 million of the revenue generated over the life of the project will be used to support community projects and tackle fuel poverty in the local communities of Burnham and Highbridge and Weston-super-Mare and the nearby rural parishes.
In the region, 10% of households are living in fuel poverty and in some areas, it is as high as 20%.
Investors in the bond offer will also become ‘one member one vote’ shareholders in Burnham and Weston Energy CIC and will
be able to appoint board members. The board includes experts in their fields and members of the local
community are to be appointed on close of the bond offer.
The bond offer
The money raised through this bond offer will enable Burnham and Weston Energy CIC to refinance a short term higher cost bridging facility which was used to purchase the site.
The project was fully accredited by the government's Feed-in-Tariff scheme in 2016 which guarantees a fixed price (rising with inflation each year) for the electricity generated by the solar farm for 20 years.
Before deciding to invest, you must read the bond offer document. The offer document can be downloaded at the bottom of this page.
IFISA eligible
Burnham and Weston Energy CIC bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). Individual Savings Accounts (ISAs) offer investors and savers a tax efficient way to save or invest. The IFISA is a type of ISA that allows you to include investments that have been made via crowdfunded offers and as with all ISAs, you receive interest tax-free.
To invest in Burnham and Weston Energy CIC bonds through a Triodos IFISA, after reading the bond offer document, select the 'Invest through IFISA' option. This selection will open a current year IFISA.
Transferring an existing ISA
If you want to invest by transferring an existing ISA to a Triodos IFISA, you must first request the transfer. You can do this under 'Account' once you've become a registered user on the platform.
Learn more about the IFISA
Key terms
Issuer
Burnham and Weston Energy CIC
Social impact
An estimated £3 million will be contributed to a community benefit fund over the life of the project (23 years). The fund will support community projects and help tackle fuel poverty in the Burnham-on-Sea & Weston-super-Mare area. The solar farm is already generating income from the sun and a payment of £50,000 will be made to the community benefit fund immediately after the successful financial close of this bond offer.
Term
18 years, full capital repayment is due by 31 March 2036 but is not guaranteed.
Repayment
The bonds are expected to be repaid in annual instalments starting in 2020 and with repayment in full expected by 2036.
Interest
5% gross per year, increasing in line with the annual retail price index from April 2019. Payable on 31st March each year (net of UK basic rate tax unless held in a Triodos Innovative Finance ISA when interest will be paid gross). Investors should note that the payment of interest and repayment of capital are not guaranteed and are dependent on the continued success of Burnham and Weston Energy CIC’s business model. Interest will accrue from the date the bonds are issued.
Security
The bonds are secured by way of a second charge debenture over the solar assets, but this asset security does not mean that capital or interest payments are guaranteed in any way. The first charge (which has priority) is held by the senior bank lender.
Transferability
Bonds are transferable but are not listed on any investment exchange which means that if bondholders wish to sell their bonds before the end of their term they will have to find a willing buyer and agree a purchase price with them.
Covenants
Restrictions on Burnham and Weston Energy CIC taking on additional borrowing until the bonds are repaid in full.
Minimum raise
The minimum raise for the bonds to be issued is £4,000,000. An underwriting facility is available for £1,350,000, which has been reflected in the raise ticker. If the minimum raise isn't reached, then investors’ monies will be returned with no accrued interest.
Timetable
The offer opens on 28 June and closes at noon on 24 September 2018, unless the £4,000,000 target has been reached earlier or the offer is extended by the directors at their sole discretion.
Capital at risk warning
Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed.
