Downing has just announced its latest energy Bond – a fundraise of £2.7 million into Alternate Energies, a solar project in Colchester. The platform has raised over £14 million in funding in just over six months, predominantly in the renewable energy space.
Julia Groves, Head of Downing Bonds comments:
"We have been investing in renewable energy projects since 2010 and believe that these Bonds offer attractive risk-adjusted returns for investors and provide competitive finance for growing UK businesses focussed on developing clean technology.
The appeal for people to invest their money in environmentally-friendly ventures is also increasing.
Feedback from a survey conducted among Downing Bond investors revealed that while respondents primary concern was the level of return offered, almost a quarter of those surveyed cited the attraction of improving alternative energy sources as the main driver behind their investment.* Alternate Energies is a portfolio of photovoltaic (PV) systems on residential housing in Colchester and Groves explains the background to the investment:
Alternate energies
“Our relationship with Alternate Energies (AE) began in 2011 when Downing managed funds invested in AE to develop a portfolio of over 300 PV roof-mounted solar panels on social housing owned by Colchester Borough Council, with the capacity to generate approximately 1,000 kWh of electricity. This represents a significant benefit to tenants by reducing their annual electricity costs by around £200 per year.
Groves concludes:
“Having worked with AE for a number of years, we have a high level of knowledge of the asset and how it has performed. This provides a good degree of confidence that the investment will deliver returns in line with expectations, however, this is not guaranteed. Renewable energy can represent a way of producing stable income through the generation and sale of renewable electricity to the grid, together with government-backed incentives – in this case Feed-in-Tarriffs (FiTs).”