Nerth Energy Bond

Capital is at risk and returns are not guaranteed.

Fixed term Bonds are not readily realisable and investors should expect to hold them for the full term.

Fixed rate Bond
Asset-backed
IFISA eligible

4.0% p.a.

Fixed return

1 yr 4 mths

Term (Up to)

Nerth Energy Ltd owns and operates a 2MW portfolio of onshore wind turbines. The bond will be secured with a first charge over Nerth’s assets. Nerth plans to use the capital raised to grow its renewable portfolio over the coming year. Read more.

Raised: £1,359,703
Tranche 3 closes

Project

This is an opportunity to lend to Nerth Energy Ltd (“Nerth”) for a period of up to 18 months earning an interest rate of 4% p.a. Nerth has the option to repay the bond from 17 January 2020 should it wish to.

Nerth is issuing this bond to raise funds to expand its renewables portfolio. The bond will be secured with a first charge over all the assets of Nerth. The estimated loan-to-value ratio (“LTV”) of the bond as at 31 March 2019 is 55%, based on Downing’s valuation of the company’s current assets. When any solar or wind assets are purchased in the future, and new tranches of the bond are issued, the LTV at the point of acquisition may not increase the bond’s LTV beyond 58%.

Nerth owns and operates a 2MW portfolio of four operational onshore wind turbines located in Lincolnshire and Nottinghamshire. These wind assets benefit from reliable income from government backed Feed-in Tariffs, in addition to long-term warranties and insurance provisions that help ensure the assets remain operational and income-generating.

About

The issuer of the bond, Nerth Energy Ltd, is a company initially owning and operating four separately located onshore wind turbine assets benefitting from Feed in Tariffs.

Nerth plans to expand its portfolio of operational renewable assets subject to a maximum LTV cap of 58% based on newly acquired assets. Increasing its number of operational assets should help to broaden the revenue streams Nerth benefits from and spread the risk.

Nerth is 100% owned by Bagnall Energy Ltd a company managed by Downing LLP. Downing has significant experience in the energy sector having invested more than £500 million in energy businesses since 2010.