Thrive exceeds £7.5m bond target

  • Posted: 14 Dec 2016

Thrive Renewables plc (Thrive), one of the UK’s most widely owned independent renewable energy companies, has raised £7.7 million through a bond offer.

Funds raised by the new bond will be put to work straight away to build two new onshore windfarms in Scotland with a combined capacity of 11MW. Once built, these will be able to generate enough electricity for 8720 homes. In addition, funds will support a pipeline project generating solar power.

Thrive currently has a portfolio of 15 operational renewable energy sites, with a third of these in Scotland. Its 21 year track record in investing in projects that result in both financial and environmental benefit, that are small to medium scale, sensitively sited and provide sustainable power to the UK grid. Thrive provides shareholders an efficient and rewarding financial connection with sustainable energy and a role in building the new, smarter energy system.

This was the first unlisted bond to be eligible to be held in the new third ISA: the Innovative Finance ISA (IFISA). Over 50% of the investors in the Thrive bond chose to hold their bonds in an IFISA and will receive their interest tax free.

The speed of the raise shows the significant demand for commercially viable and sustainable investments. Investors could invest online for a minimum of just £5 making this investment widely accessible to everyday investors. A total of 938 people invested, with a third of those existing share or bond holders, meaning Thrive has grown its investor community by some 600 people.

The bond, issued by Thrive Renewables plc on an unsecured basis, will pay 5% gross interest per year with capital repaid in March 2024. Payment of interest and repayment of capital is not guaranteed and is dependent on the continued successful operation of the Thrive business model.

Matthew Clayton, Managing Director of Thrive Renewables said: “This bond exceeded expectations. We had set a target of £7.5m by the close date of 27th February, so to have raised over this amount in just four weeks confirms that there is a significant appetite for investing in and supporting clean energy for future generations.

"Thrive exists to connect individuals with cleaner, smarter energy, allowing our investors to contribute directly to change. We are delighted to welcome another 600 new investors to the Thrive community and for the continued vote of confidence from our existing investors. The money raised through the bond will allow us to continue to grow our portfolio of renewable projects to delivering positive financial, environmental and social returns.”

Thrive already generates enough clean electricity to meet the need of over 40,000 homes; the additional projects coming online as a result of this bond will boost that to a further 8,270 homes.

Thrive was advised by Triodos Bank. Its Corporate Finance Team Head Dan Hird said: “This is the fastest capital raise we have ever done. I think it captured people’s interest because of the strong brand and good track record of Thrive as a company, the impact it has as an organisation and the financial return - coupled with the ability to receive the interest tax free through the ISA.

The corporate finance team of Triodos Bank is acting as adviser to Thrive Renewables and promoter of the offer.

Abundance Investment, the regulated peer to peer investment platform, is acting as registrar and facilitator for the bonds and is the IFISA manager.

Thrive Renewables targeted £7.5m for this raise but will issue up to £10m of bonds through this offer. The bond second offer is still open with a minimum subscription amount of £90,000 and a final closing date of 27 February 2017. For more information please contact Triodos Bank on investments@triodos.co.uk or 0117 980 9593.

ENDS

An investment in Thrive Renewables plc bonds is not covered by the Financial Services Compensation Scheme. Thrive Renewables plc’s ability to pay the interest and repay the bonds is not guaranteed and is dependent on the continued success of its business model. Thrive Renewables plc bonds are unquoted securities with a fixed repayment date and although the bonds are transferable, investors should be aware that they may not be able to access their capital during the life of the bond.

For further information please contact Karen White or Chris Lawrance, JBP PR.

Email: karen.white@jbp.co.uk, chris.lawrance@jbp.co.uk

NOTES TO EDITOR

About Thrive Renewables

Now independent, Thrive Renewables was established over 20 years ago by leading ethical bank Triodos Bank, and has more than 5,700 shareholders and bondholders and more than 80MW of assets under management. In 2015 Thrive Renewables delivered enough clean energy to meet the energy demand of 41,187 UK homes’ equivalent and saved 72,876 tCO2e emissions.

Thrive Renewables provides an opportunity to invest directly in a portfolio of renewable energy projects, delivering financial returns and contributing to tangible greenhouse gas emission reductions. Thrive Renewables also works with developers and innovators to develop and build new sources of renewable energy to create a smart energy system fit for the future. www.thriverenewables.co.uk

About Triodos Bank

Triodos Bank is one of the world's leading sustainable banks. Its advisory arm, Triodos Corporate Finance, works exclusively with sustainable businesses and has a long track record of advising businesses on raising capital through private placements and retail offers.

Since 2011, Triodos Corporate Finance has raised over £85 million for businesses within the sustainability sector with investments from institutions, charitable foundations, high net worth individuals and retail investors. www.triodos.co.uk 

About the Innovative Finance ISA

The IFISA was introduced on 6 April 2016 and from 1 November 2016 crowdfunded debt securities, such as the Thrive Bond, were eligible for inclusion.

For the tax year 2016/17 investors can subscribe up to £15,240 in an ISA. Contributions to an IFISA count towards the overall ISA contribution limit.

Thrive Renewables plc published an offer document dated November 2016. Applications can only be made on the basis of, and subject to, the terms and conditions of the information contained in the offer document and accompanying application pack. Thrive Renewables plc is a company registered in England (02978651). Registered address: Deanery Road, Bristol, BS1 5AS.

This financial promotion has been issued and approved by Triodos Bank NV, incorporated under the laws of the Netherlands with limited liability, registered in England and Wales with branch number BR3012, authorised by the Dutch Central Bank (DNB) and regulated in the UK by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Details about the extent of our regulation by the FCA and PRA are available from us on request. Registered office: Triodos Bank, Deanery Road, Bristol BS1 5AS.