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Low Carbon Hub

2019 Low Carbon Hub Community Energy Fund

£250 minimum

The Low Carbon Hub is building a community-owned portfolio of renewable projects for Oxfordshire. Low Carbon Hub is running the Community Energy Fund to help it move into its next, ambitious phase of activity. Low Carbon Hub aims to raise a further £4 million of equity over the next three years so it can pursue a range of opportunities that will enable it to strengthen and grow its  portfolio of community energy projects.


Term of Share

Low Carbon Hub hope its Members will be able to support it for the long term, but it appreciates that people’s financial circumstances change, and so investors may wish to withdraw their investment after the four year minimum term. The Community Energy Fund will give Low Carbon Hub an opportunity to raise new equity to help it meet equity withdrawal requests. The process for equity withdrawal has been built into this share offer. Please note that the ability to facilitate withdrawal requests will depend upon the availability of funds.


Investing on behalf of children

This is a long-term offer where Low Carbon Hub want investors to work with it as members of the Society. The Hub recognises, however, that its older investors will want to understand what their choices are if they want to invest for the next generation. These are three:

  1. You can invest for children or grandchildren over the age of 16. They fill in the form in their name and you pay Low Carbon Hub the money for the investment.
  2. You can invest for children or grandchildren under the age of 16. You fill in the form in your name and the section on Holding shares on behalf of children  and then transfer the shares to them when they reach 16.
  3.  You buy the shares in your name but leave them to your children or grandchildren in your will. The shares become part of your estate.

 


Minimum raise for offer to proceed

There is no minimum for this round of the offer to proceed, Low Carbon Hub are targeting raising £800,000 by the 7th March 2019 deadline.


Financial return

Low Carbon Hub is targeting an interest rate of 5% per annum. The target rate for the first four years of investment is 4% per annum.

Payment of interest and capital is not guaranteed and is dependent on the continued success of the Low Carbon Hub business model.


Social return

Each year Low Carbon Hub's current portfolio of 42 renewable energy installations can generate 4.3 GWh of green electricity, save 1,290 tonnes of CO2 and contribute enough clean electricity to power 1,394 typical homes.


Minimum investment amount

£250


Maximum investment amount

£100,000

If you would like to invest more than £100,000 in the Low Carbon Hub, please contact Ethex on 01865 403304.


Getting your money back

Low Carbon Hub strongly encourage investors to view their investment as a long-term commitment to the project, generating long-term financial benefits to you and sustained environmental and social benefit to the community. However, investors in the Community Energy Fund whose investment has been in the Fund for a minimum of four years have the right to request the return of some or all of their capital. Although Low Carbon Hub cannot guarantee to fulfil all requests, it is committed  to making funding available each year to facilitate some requests.

This is a significant change from Low Carbon Hub's previous share raises. Capital invested in previous share raises is gradually returned to investors over the 20-year project lifetime, rather than on request.

There will be an annual process by which investors can apply to withdraw some or all of their equity, up to a maximum of £20,000 in any one year. Investors should submit application requests by 15 December each year. Low Carbon Hub will confirm if your application has been successful the following April, with successful applicants having their capital returned within 180 days of notification of their success. To cover administration costs, successful applicants will forfeit 90 days of interest.

In the event that the Low Carbon Hub lack sufficient capital to meet all the requests, the rules for prioritisation of applications are set out in the Share Offer Document.

Ultimately equity withdrawal remains at the discretion of the Directors who have an obligation to put the overall financial wellbeing of the Low Carbon Hub IPS Limited first.


How secure is your money?

Payment of interest and capital is not guaranteed and is dependent on the continued success of the Low Carbon Hub's business model.

This investment is not covered by any government compensation scheme.

The value of your shares will never increase and may reduce. Do not invest any funds that you cannot afford to be without.


Tax considerations

Interest is paid gross without deduction of any tax. You may also receive inheritance tax relief on these shares if they form part of your estate.


Qualification

This investment is available to persons aged over 16 only with a UK bank account.


Keeping track of your investment

The details of your investment are recorded on your share certificate and by the Company.

The Company will send out a full annual report once a year. 

£72,6009%
Applied for to date, of
£800,000 target

Need help?

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

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

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