Orchard Community Energy

2017 Bond offer

£500 minimum

Orchard Community Energy was established in 2015 by a group of experienced Kent-based professionals. Its purpose is to develop community-owned renewable energy, low carbon and energy efficiency projects in Swale and Medway.


Term

The bonds will have an initial term ending on 31 October 2019. 


Minimum raise for offer to proceed

If this fundraise does not meet its maximum target then the project will still go ahead as the project is fully underwritten by the developer OPDE. However, in this circumstance the community fund will be less in early years as the interest rate of the underwriting finance will be higher than the bonds. If the underwriting finance is called on then Orchard Community Energy will endeavour to raise further finance at a lower interest rate to replace the underwriting as soon as possible.


Financial return

5.5% interest rate per year. Interest will accrue from the first day of the month after cleared funds are received by Ethex, e.g. if cleared funds are received in January, interest will start to accrue on 1 February.

Payment of interest and capital is not guaranteed and is dependent on the continued success of the Orchard Community Energy business model.


Social return

It is projected that the project will deliver a community fund of up to £3 million over 25 years for distribution to community projects in Swale and Medway. 


Minimum investment amount

£500


Maximum investment amount

There is no maximum investment amount.


Fees payable to purchase this product

Basic account Member account
None None

Statutory charges

None


Getting your money back

The bonds will have an term ending on 31 October 2019. If bondholders wish to redeem their bond at that point, they must give Orchard Community Energy at least 3 months’ notice of their intention by completing and returning the repayment notice on the reverse of their bond certificate.

If bondholders wish to extend the term of their bond beyond the initial term they do not need to do anything.

Although the Bonds are transferable, they will not be listed on a recognised stock exchange due to the considerable costs involved. Instead, the Company intends to use Ethex (www.ethex.org.uk) to provide a secondary trading platform for the Bonds. 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.


How secure is your money?

The Bonds are an unsecured investment and will rank behind secured or preferential creditors. In the event of Orchard Community Energy’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 Orchard Community Energy’s assets fail to cover all unsecured liabilities.


Keeping track of your investment

Annual accounts will be prepared by the Company’s accountants, presented to the Bondholders following the Annual General Meeting and published on the Company’s website.

Bond issue administration, share registrar and ongoing bondholder relations will be managed under contract with the Community Share Registry.

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

Orchard Community Energy will pay interest to bondholders without deducting any amount by way of tax. Applicants should be aware that they may need to pay tax on that interest, and therefore may need to declare it to HMRC.

From the 6 April 2016, basic rate taxpayers are able to earn up to £1,000 in savings income tax-free. Higher rate taxpayers are able to earn up to £500. This is called the Personal Savings Allowance.


Qualification

This investment is available to persons aged over 18 only.

Co-operatives, community benefit societies, companies and other incorporated associations may also apply for the bonds.

£828,00069%
Applied for to date, of
£1,200,000 target

Need help?

The Ethex team are here to help from 9am to 5pm

https://www.ethex.org.uk/savings--investments_16.html

Invest and save with Ethex to

make money do good

You can browse, compare and invest in a range of products on Ethex platform from bank accounts and ISAs to equity investments and charity bonds that offer a social/environmental as well as a financial return. All you need to do is get started...