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Coigach CIC to raise £1.75 Million for Community Energy Project
It’s great to see that the Coigach community interest company is raising £1.75 million through a bond issue with Triodos Bank. Locogen was appointed project manager for the community energy project back in 2015 and took the project all the way through to installation and commissioning in March 2017. Since then, Locogen has provided asset management services for the 500kW Vestas V47 turbine.
The bond issue will be used to refinance the wind turbine asset and enable the CIC to use all retained profits to fund a variety of community projects in the area. Coigach Community CIC expects the turbine, which has been christened ‘Varuna’, to generate surpluses of around £4.4 million after costs. 100% of the profits from this community energy asset will be donated to Coigach Community Development Company to fund projects such as affordable housing, bring employment in to the area, develop transport links, support local amenities and conserve the natural environment. One key project is to re-develop the community’s harbour facilities to support the local fishing fleet.
The Coigach Community CIC bonds will be secured by way of a first legal charge over the wind turbine asset and will pay interest of 5% a year increasing annually in line with inflation. The bonds will be redeemed in instalments over 12 years and are eligible to be held in an Innovative Finance ISA, which means interest can be received tax free.
The bonds can be bought on Triodos Bank’s investment crowdfunding platform here.
Iain Muir, director of Coigach Community CIC, said:
“Community energy is a great way of generating funds for the benefit of the local community.
By supporting our wind turbine project, investors are not only investing in an operating asset and the generation of renewable energy but can be assured that they are also helping us to tackle some of the most pressing issues our community faces.”
Dan Hird, Head of Corporate Finance at Triodos Bank, said:
“To tackle the big issues we face today, we need to inspire ordinary investors to support progressive and credible community led businesses. This bond issue perfectly aligns with our mission at Triodos Bank to make money work for positive social, environmental and cultural change.”