Bagnall 7-day Access Bond

Capital is at risk and returns are not guaranteed.

7-day access Bond
IFISA eligible

3.0% p.a.

Fixed return

Unsecured

A new 7-day Access Bond from Bagnall Energy Ltd with a fixed rate of 3% p.a. and a flexible term. The Borrower makes investments into energy infrastructure such as solar, wind, anaerobic digestion and reserve power. The bond has a low LTV but is not secured. Read more.

Raised: £999,885
Tranche 6 closes

Project

This 7-day Access Bond provides a flexible way to put your money to work in the short-term. This could be useful if you are planning a purchase, waiting for a longer-term Downing bond to become available or just want the opportunity to earn inflation-beating interest while maintaining access to your funds. This bond is all about putting your money to work while you wait. To help get your money working sooner, we close tranches weekly meaning you can start earning interest faster.

In addition to the returns and flexible access offered by the Bond, your investment will make an impact by funding energy infrastructure in the UK.

You can request your money back at any time during the bond term and Bagnall Energy expects to return capital and interest requested within seven days.

The interest rate is 3% p.a. The interest is compounded, so instead of interest being paid out quarterly it is added to your initial investment each quarter to earn interest just like your capital.

In this raise, Bagnall Energy has £2.5 million available from a wider £20 million offer. Assuming the full £20 million is issued, the loan-to-value (“LTV”) ratio of the bond will be 13%.* This compares the level of assets the company has at its disposal with the anticipated level of debt.

The Bond is unsecured and should Bagnall Energy take on secured debt this would rank ahead of you. However, you will rank ahead of shareholders in the event of a default or liquidation. Shareholders have c. £165 million of capital invested in Bagnall Energy as at 31 March 2019.

The 7-day Access Bond provides an investment with a return that beats current UK inflation (CPI-2.0% as at the end of May 2019) while allowing you to request a redemption at any time.

*Source: based on management accounts as at 31 March 2019.

About

Bagnall Energy, managed by Downing LLP, makes investments in energy infrastructure projects and currently has a portfolio of over 50 holdings, valued at c. £165 million (excluding cash), as at 31 March 2019. The portfolio is diversified across different sectors to mitigate overexposure:

  • 33% Anaerobic Digestion;
  • 28% Reserve Power;
  • 26% Solar Power;
  • 7% Other and;
  • 6% Wind Power

In the quarter to 31 March 2019, Bagnall Energy made c.£12.9 million of new loans and direct investment.

Downing is an established investment manager with over 30 years of experience and £1 billion of assets under management, of which over £300 million is currently invested in renewables and energy infrastructure projects.