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Gawcott Fields - OFFER CLOSED

2016 Bond offer - OFFER CLOSED

£250 minimum

Gawcott Fields CIC is a professionally managed Community Interest Company that has been established to install and run a community solar farm at Gawcott Fields Farm, between Gawcott and Buckingham.


Term of Bond

20 years; the Bond matures on 10th February 2037 and Bondholders should plan for their capital to be invested for the full 20 year period. Unless repaid early, Bondholders will be returned their full capital within 60 days of 10th February 2037. Payments of interest will be made annually in November.


Minimum raise for offer to proceed

The Offer will remain open to Applications up to the value of the Maximum Sum, or until the Closing Date (10th February 2017), whichever is the earlier. The Offer will only close if the Bank Loan has been drawn down. The Directors may extend the Offer Period at their discretion.


Financial return

The Directors expect that over 20 years the average interest rate will be 6%, though interest rate may vary to some degree year-on-year to allow for variation in performance and availability of funds. If performance in one year does not allow for payment of 6% interest, the Bond’s “roll-over” mechanism allows for higher interest payments in subsequent years. The Directors generally expect to be able to pay interest on the Bonds at or close to 6% in most years and do not expect large variations in interest payments over the term of the Bonds. The Financial Projections, which have been approved by Westerly Chartered Accountants, support this expectation

Bondholders will also share in any increased revenues of Gawcott Fields CIC as a result of increases in inflation. This Offer allows Bondholders to receive increased interest payments if the rate of inflation that applies to the FiT increases to 3% or more and Gawcott Fields CIC receives increased FiT payments as a result. If this is the case, the Directors will allocate the increased FiT payments equally between increased interest payments for Bondholders and increased payments towards the Community Surplus. As an example, if the rate of inflation applying to FiT rises to 4% and Gawcott Fields CIC receives increased FiT payments as a result, the payments derived from inflation above 3% - 1% in this example – will be split equally between Bondholders and the Community Surplus, meaning that Bondholders would be entitled to receive additional interest of 0.5%.


Social return

Gawcott Field CIC's project is predicted to save 47,972 tonnes of CO2 over 25 years.


Minimum investment amount

£250


Fees payable to purchase this product

Basic account Member account
None None

Statutory charges

None


Getting your money back

The Bond matures after 20 years, on 10th February 2037 and Bondholders should plan for their capital to be invested for the full 20 year period. Bondholders may be repaid the amount they have invested before this date if the Gawcott Fields CIC has sufficient funds to do so. Please see the offer document for full information.

Through Ethex, Bondholders may be able to buy and sell Bonds on a matched bargain basis whereby registered sellers are matched with registered buyers. A modest charge will be applied by Ethex which can be reduced if the Bondholder opens an Ethex Member Account (providing access to other Ethex portfolio services).


How secure is your money?

The Bonds are an unsecured investment and will rank behind secured or preferential creditors. In the event of Gawcott Fields CIC’s financial failure, the Bonds would have the status of an unsecured creditor and may not be capable of being repaid in full or at all should the proceeds from a sale of Gawcott Field CIC’s assets fail to cover all unsecured liabilities.


Keeping track of your investment

Annual accounts and will be prepared by the Company’s accountants, presented to the Bondholders following the Annual General Meeting and published on the Company’s website, as will a social impact report prepared by the Directors.

Bond issue administration, share registrar and ongoing bondholder relations will be managed under contract with Registry Trust Limited. www.registry-trust.org.uk

If you subscribe to the Ethex Portfolio Service you can track your investment and follow the performance of the business in your personal portfolio.


Tax considerations

Under withholding tax rules, interest payments will be paid to Bondholders net of tax at the basic rate for income tax (currently 20%). Gawcott Fields CIC will pay the deducted tax amount to HMRC and arrange for tax statements to be issued to all Bondholders. Applicants should be aware that they may need to declare the interest they have received to HMRC, and use the tax statement issued to them by Gawcott Fields CIC to do so.

The Personal Savings Allowance (“PSA”) was introduced in April 2016. If you are a basic rate (or 20%) taxpayer, the PSA allows you to earn up to £1,000 in interest (from the Bonds and any other sources of interest income such as savings accounts) in a tax year free from tax. If you are a higher rate (or 40%) tax payer, the PSA allows you to earn up to £500 interest in a tax year free from income tax. The PSA does not apply to additional rate tax payers. For example, if you earn £43,000 or less of taxable income in a tax year, up to £1,000 of interest income is tax free. If your taxable income is between £43,001 and £150,000, you can receive up to £500 of interest income tax free.


Qualification

This investment is available to persons aged over 18 and organisations. As an investment for the future with a term of up to 20 years, you may wish to apply for Bonds on behalf of a child or grandchild who is under 18. If so, please apply for the Bonds in your own name, and inform Gawcott Fields CIC of your intention to hold the Bonds on behalf of your nominated person by emailing gawcottfields@cfrcic.co.uk.

£418,55083%
Applied for to date, of
£500,000 target

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