Below is a notice to Solar for Schools bond investors providing an update on the anticipated draw down and interest accural dates for their investment. For all further investment the interest accrual date will now be the final drawdown date, which is expected to be in early September 2019.
Notice to Solar for Schools bond investors June 2019
Dear Solar for Schools supporters,
Thank you for your interest in investing into the Solar for Schools bond offer currently open on the Ethex platform. We’ve been overwhelmed by the response to date from individuals such as yourself who are looking to help us finance the installation of our pipeline of roof-top solar arrays on school rooftops over the next year. With a little under a month to go until the offer close date of 30th June 2019 we’ve already received pledges of £920,000 towards our £1m target. Knowing this finance is available to the Society to deliver on our pipeline of projects over the next year brings us a huge degree of confidence that we can maximise the impact of this bond issue and have all projects operational before the extended FITs deadline of 31st March 2020.
A number of projects are ready for funding at this time, and we are looking to draw down the first £250k of investment raised under this offer and issue bonds to investors with interest to accrue from 31st July 2019 as outlined in the offer document.
However, a number of our projects, which we anticipated would be completed in Q2 2019, have experienced delays caused in part by the uncertainties created by the end of the FIT regime towards the start of this year. While the full £1m of investment is critical to delivery on our projects over the next 6 months, the delay to a number of projects means it would not be prudent (and in fact may be detrimental to the Society) to draw down all monies pledged to date. As I’m sure you can appreciate, we need to manage our cash position carefully at this extremely busy time for the Society.
We therefore need to delay the issuing of bonds to some investors at this time, and that means there will be a period after 31st July 2019 where those investment monies that have not been drawn down will not be accruing interest as anticipated. I’ve attached our pipeline of projects outlining the expected install week for the next 35 schools, and below is an indicative timeline of when we propose to make further allocations of bonds to investors. Until bonds are issued your money will remain held in escrow by Ethex in their client account. Should this delay make you change your mind about investing with us we completely understand, and Ethex will process a refund to you in full.
We expect to deploy £600k by the end of August and up to a further £100k over the following 4 months, with a potential total of over £2m by March 2020. So assuming not too many surprises, we expect to draw down funds from Ethex and issue bonds as follows. Please note this is our best estimate and not in any way guaranteed:
Early June: £250k
Early July: £250k
Early August: £250k
Early September: £250k
Should any of the larger projects, for which we already have planning and structural surveys completed, sign the revised agreements (higher electricity price as less subsidy secured) sooner, then they can be built 3-4 weeks earlier and we can draw down funds sooner.
Thank you for your patience and we hope you will continue on this journey with us as we aim to complete these installations before the extended FITs deadline and deliver on our carbon saving and educational aims.
Solar for Schools CBS Ltd