This bond offer will support Orchard Community Energy's project – a newly-operational 5 MW solar array at Orchard Farm near Iwade, Kent. As a community-owned asset, it should provide valuable income that can be reinvested in the local community.
The project has been developed and constructed by an experienced international solar developer, OPDE and has already started generating electricity under the Feed in Tariff (FiT), a government incentive, which is linked to the rate of inflation, that provides financial support to the project for a period of 20 years.
Shares in Orchard Community Energy have already been issued to encourage and support local ownership, raising £522,000. Using this and debt provided by Triodos Bank, Orchard Community Energy successfully took ownership of the project on 16 June 2016.
The proceeds of this bond offer will be used to contribute to repayment of the outstanding balance owed to the project developer.
The bond will expire on 31 October 2019 and will pay interest of 5.5% a year. Interest will be paid annually. There will also be the option for you to extend your bond beyond the initial term at 5%. The offer is fully underwritten which means there is no minimum fundraising target that the bond needs to reach.