For every £250,000 raised from Bond investors to fund solar panels on schools, those schools will prevent 3,000 tonnes of CO2 from ever entering the atmosphere, inspire hundreds of students each year to live more sustainably and save and earn £150,000 - £350,000 over the next 25-30 years.
The bonds have an initial term to 31 October 2025.
£100,000. If minimum isn't reached money will be returned to investors in full.
5%, paid annually on the 31st October.
For the first interest payment on 31 October 2020, Interest will be calculated pro-rata from the date of accrual. Interest will accrue from three months after the bonds have been allocated and the monies drawn down from Ethex by Solar for Schools.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.
Each school will save and earn between £25,000 and £350,000 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.
There is no maximum investment amount for Non-IFISA investments.
For those investors who wish to invest via the Ethex IFISA the maximum you can invest per tax year is £20,000.
Previous years ISA subscriptions can be transferred into the Ethex IF ISA to pay for any investment. If you wish to transfer an ISA balance to Ethex please give us a call on 01865 403304 and we will send you an ISA transfer form.
Although the bonds are transferable, they will not be traded on any recognised exchange and are therefore non-readily realisable. The maturity date of the bond is 31 October 2025.
The Bonds have a minimum initial term of one year, after which Bondholders can request to re-deem their Bonds by giving at least three months notice to 31 October. Bondholders wishing to re-deem their bonds early must serve notice to the CBS no later than 31 July each year. The CBS is not obliged to re-pay more than 5 per cent 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.
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.
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-mail 2-3 times a year. Bondholders are welcome to attend the CBS AGM.
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.
This bond offer is Innovative Finance ISA (IF ISA) eligible, which means that eligible investors can use their current £20,000 per year ISA allowance to invest into an IF ISA wrapper provided by Ethex and receive their interest payments free of tax. Those who invest via the Ethex IF ISA will have their interest paid into their IF ISA account so that funds remain part of their ISA wrapper.
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.
The Bonds are transferable to other investors. Although the Bonds are transferable, they will not be listed on a stock exchange or other secondary mrket. Applicants should be aware that there can be no guarantee that a market for their bonds will develop. It is not expected that Bondholders will be able to sell their Bonds for more than they paid for them and they may need to be sold for less than was paid for them.
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.
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01865 403 304