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Solar for Schools

Bond Offer 2018 Issue 1 - Offer Closed

£500 minimum

For every £500 you invest, you will help schools acquire solar panels, enabling them to save and earn between one and three times that amount over the 30-year lifetime of the solar panels.


Term

The bonds have a 4-year initial term to 31 October 2021.


Minimum raise for offer to proceed

£125,000. If minimum isn't reached money will be returned to investors in full. 


Financial return

5%, paid annually on the 31st October.
For the first interest payment on 31 October 2018, Interest will be calculated pro-rata from the date the bonds are allocated after the close of the offer. Interest will be paid gross, i.e. with no tax deducted.

Payment of interest and capital is not guaranteed and is dependent on the continued success of the Solar for Schools business model.


Social return

Each school will save and earn between £30,000 and £250,000 depending on the size and location of the school over the first 25-years of the system’s lifetime. Given a system’s life is over 30 years, the school will then benefit from virtually free electricity for the following decade. The additional energy savings can be put to good use enabling more of the school’s budget to be spent on improving the education facilities at each school, rather than paying for mains electricity.


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 have a minimum initial term until 31 October 2018, after which Bondholders can request to re-deem their bonds by giving at least 3 months notice before October 31st, i.e. bondholders wishing to re-deem their options early must serve notice to the CBS no later than the 31st of July each year. The CBS is not obliged to re-pay more than 5% of the total outstanding bonds in any given year, but will attempt to honour all requests in order of application.

The Directors have planned to re-finance during the remaining term of the bond. Refinance is typically available where an operational solar array demonstrates a clear track record of performance, and so would be able to secure finance on better terms. If refinance is offered on preferential terms that are materially better than those currently entered into, the CBS may offer to re-pay bondholders early if it considers that doing so would be beneficial to the schools. Bondholders are not obliged to accept early re-payment, in which case the CBS will simply use the remaining funds to deploy more projects instead.


How secure is your money?

The bonds are an unsecured investment and will rank behind secured or preferential creditors. In the event of the Solar for Schools Community Benefit Society’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 the Solar for Schools Community Benefit Society’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 Solar Options for Schools Ltd.

The performance of each system will be available online and all bondholders will receive updates by e-amil 2-3 times a year. Bondholders are welcome to attend the CBS AGM.

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

The precise tax treatment of a Bondholder will depend on the Bondholder’s individual circumstances and the law and practice in force at the relevant time and may therefore be subject to change in the future. If applicants are in any doubt about their tax position they should consider taking advice from a suitably qualified professional.

Solar for Schools Community Benefit Society LTD (CBS) 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. For many applicants, this should be done by declaring the interest they earned from Solar for Schools CBS on a self assessment tax return.

From the 6 April 2016, UK basic rate taxpayers are able to earn up to £1,000 in savings income tax-free.


Qualification

Anyone over the age of 18 may apply for the bonds.

Co-operatives, community benefit societies, companies and other incorporated associations may also apply for Bonds. No commission will be payable to introducers of potential investors.

Offer Closed

As of the 26th January 2018, this offer is closed.

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