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Our Power - OFFER CLOSED

Bond Offer

£500 minimum

This bond offer aims to raise £4.5m for the development of the Our Power social enterprise into a profitable and progressive energy supply company working to make energy fairer and reduce levels of fuel poverty. Our Power is also committed to providing employment in areas of deprivation, with a target of creating 200 jobs in areas of high unemployment and poverty.


Term

3 year term to January 2021.


Minimum raise for offer to proceed

£2,000,000


Financial return

6.5% per annum, paid annually from January 2019 

Payment of interest and repayment of capital are not guaranteed and are dependent on the continued success of Our Power's business model.

The bonds are eligible for Social Investment Tax Relief (SITR). The availability of SITR, which depends on an investor’s personal circumstances, current legislation and the company’s compliance with the rules, provides a forecast internal rate of return (IRR) of 13.5% based on tax relief monies being received in October 2018. 

Important notice: Under current HMRC rules only the first £300,000 of qualifying investment is eligible for SITR. This threshold is due to change to £1.5 million under the terms of the 2017 Finance Bill currently going through Parliament, once the Bill is passed the £1.5 million threshold will be backdated to April 2017. However, until such time as the Bill passes only the first £300,000 of qualifying investment into the Our Power 2017 Bond will be eligible for SITR.


Social return

It is estimated that a fuel-poor householder on Our Power's standard variable tariff will be able to heat their home for an extra 82.5 days compared to a household on the standard variable tariff of one of the Big 6.


Minimum investment amount

£500, or higher multiples of £100


Maximum investment amount

There is no maximum investment amount.


Getting your money back

You can only get back the money you invest in these shares by finding someone else that is willing to buy them at the price you want to sell them at.

The bonds are due for repayment in full in January 2021. Our Power's ability to repay the bonds in January 2021 or at all, is not guaranteed and is dependent on the continued success of Our Power's business model and their ability to refinance the bonds when they mature.

The bonds have a fixed repayment date and investors will have no ability to require the company to repay their capital before the repayment date. Investors should therefore only invest if they are prepared to wait until the scheduled repayment date of January 2021 to receive their capital. The company retains the ability, albeit not the obligation, to repay the bonds early upon the death of a bondholder.

Bonds can be sold on a matched bargain basis facilitated by Ethex, an ethical investment intermediary, if there are willing buyers. There is no guarantee that there will be a buyer or what price the buyer will be willing to pay for the Bonds.

Please note that any SITR that has been claimed against a bond that is transferred after being held for less than three years will need to be repaid.


How secure is your money?

The bonds are unsecured so bondholders will rank equally with Our Power's other unsecured creditors and behind secured and preferential creditors on insolvency.


Keeping track of your investment

Bondholders will receive an annual report by 31 December each year which will contain details of the financial and social impact performance of the enterprise.

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


Tax considerations

The bonds are eligible for Social Investment Tax Relief (SITR). The availability of SITR, which depends on an investor’s personal circumstances, current legislation and the company’s compliance with the rules, enables eligible investors to claim up to 30% tax relief on their investment. 

Under current HMRC rules only the first £300,000 of qualifying investment is eligible for SITR. This threshold is due to change to £1.5 million under the terms of the 2017 Finance Bill currently going through Parliament, once the Bill is passed the £1.5 million threshold will be backdated to April 2017. However, until such time as the Bill passes only the first £300,000 of qualifying investment into the Our Power 2017 Bond will be eligible for SITR.


Qualification

This investment is available to persons aged over 18 only.


Fees payable to purchase this product

Basic account Member account
None None

Statutory charges

None

Offer closed

 As of the 21st December 2017 this offer is closed.

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