Thrive Renewables Plc (Thrive) bond offer, promoted by ethical lender, Triodos Bank and available for the first time through an Innovative Finance ISA (IFISA) with Abundance, attracts over 900 everyday investors, from all walks of life, and funds £10M of renewable energy projects.
What’s striking about Thrive’s bond offer is that 933 individuals chose to invest their money in renewable projects from just £5 online. And whilst the 5% interest rate and IFISA benefits provided a healthy incentive to investors, Thrive’s bond demonstrates strong investor appetite and support for UK renewable energy.
With a 20-year history and trusted ethos, Thrive unites a growing movement of investors who are wanting to see investment with impact. The Bristol based, sustainable company has contributed to the construction of 95MW of renewable energy projects, across 19 sites around the UK with a total of £105M assets under management.
“Last year the UK generated more electricity from wind than coal for the first time, on an annual basis – 11.5% compared to 9.2%. Today, the UK is the world’s sixth biggest wind-power producer.
With 933 Thrive investors raising £10M we’ll be able to power over 36,000 more UK homes with clean energy annually. We are driven to invest in the transition to a renewables’ based energy system, offering investors a rewarding connection with sustainable energy.” Said Matthew Clayton, MD Thrive Renewables.
A portion of the £10M funds have already gone directly into three renewable energy projects including a three-turbine wind farm built on an old coal mine in Scotland. These new projects will power clean electricity to homes by Autumn 2017. Thrive has also invested in Solar PV for the first time this year broadening its scope of sustainable projects for investors.
Thrive’s unlisted renewable energy bond attracted a diverse range of everyday investors, high net worth individuals, foundations, and institutions with investments ranging from just £5 to over £1M.
The first part of the bond offer, for those investing between £5 and £90,000, completed in just 22 days and is Triodos Bank’s fastest capital raise to date.
Dan Hird, Head of Triodos Corporate Finance said: “We’re not surprised this bond offer has been our fastest capital raise. I think it captured the public interest because of Thrive’s strong brand, good track record as a company, and the impact it has as an organisation and the financial return. Investors benefit from knowing exactly where their money is going, in this case into renewable energy that is doing good for the environment.”
The bond offer was made available online through leading sustainable investment platform, peer-to-peer lender, and FCA regulated, Abundance Investment Ltd. It attracted investors as young as 24 years and the oldest at 94 years, with over 50% of new investors coming via the Abundance online platform. 29% of all investors were women who had an average investment of £5,877.
“We are enabling small investors to produce a regular return from the generation and sale of 100% green electricity. We provide an accessible investment for everyday investors who seek healthy returns, transparency of funds and more control over how their money is invested. You can invest in green energy projects from just £5 online, coupled with the ability to get tax-free interest via the IFISA.” Said Bruce Davis, Founder and Joint MD of Abundance Investment Ltd.
30% of the capital raised was invested through the IFISA wrapper and new investors contributed nearly 42% of the total raise. New investors invested an average of £1,000 and were typically younger than traditional Thrive investors who invested an average of £5,000.