Earn 4.0% p.a. by investing in an energy bond.

You could lose all of your money invested in this product. This is a high-risk investment and is much riskier than a savings account. 

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£6.3 million

as part of a larger £10 million raise.

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58% LTV

Maximum loan-to-value of the bond. The cap applies for new raises and asset acquisition.

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12

month term

Note, the borrower can choose to repay the bond from January 2020.

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£4,943,863 issued

in the bond to date.

About this investment

Nerth currently owns and operates a 2.5MW portfolio of onshore wind turbines, consisting of four 500kW turbines located in Lincolnshire and Nottinghamshire and two 250kW turbines in Ayrshire, Scotland.

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.

Nerth plans to expand its portfolio of operational energy assets, subject to a maximum LTV cap of 58% at the time that new assets are acquired. Increasing the number of operational assets should broaden Nerth's revenue stream and help spread risk.

Nerth turbines illustration.png

Open for investment


Open for investment

Offer A - (£100 - £99,999)

4.0% p.a.

Fixed rate interest

To view the offer document and invest please sign up or log in.
Open for investment

Offer B - (£100,000+)

4.0% p.a.

Fixed rate interest

To view the offer document and invest please sign up or log in.
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What do I need to know?

  • Why invest in energy?
    • Downing anticipates that renewable energy generation will increase to meet the UK's targets for combating climate change.
    • Nerth energy can take advantage of schemes such as Feed-in-Tariffs, that are backed by the UK government to promote renewable and low-carbon electricity generation technologies. 
    • Feed-in-Tariffs provide a fixed price for the energy generated by renewable sources to improve the return on investment. Having a high proportion of electricity sales at a fixed price for energy assets helps to mitigate power price risk. 
  • Where is my money invested?

    Your money will be used to expand Nerth Energy Ltd's portfolio as it carries out its strategy of acquiring more wind, solar and other operational energy assets.

    The company currently owns and operates a 2.5MW portfolio of onshore wind turbines, consisting of four 500kW turbines located in Lincolnshire and Nottinghamshire, and two 250kW turbines in Ayrshire, Scotland. The bond is secured on these assets, which means that if something goes wrong Downing should be able to recover some value for bondholders via the sale of the assets.

  • What are the risks?

    As with all investments, investing in an energy bond has risks that you should be aware of and comfortable with before you invest.

    • Capital is at risk and returns are not guaranteed.
    • Investors are recommended to spread their funds across a number of investments to diversify risk and not place too much capital in a single investment.
    • The Financial Services Compensation Scheme (FSCS) for deposits does not apply to Downing Bonds. There may be circumstances in which investors can claim up to £85,000 of compensation where Downing LLP is unable or unlikely to honour legally enforceable obligations against it (e.g. claims for fraud or misrepresentation). However, investors will not be able to claim under the FSCS simply because a bond fails to repay capital or pay interest.  
    • Past performance is not a reliable indicator of future results.
    • The estimates, forecasts or projections of anticipated revenues, site values, costs, or inflation are based on what we believe to be reasonable.
    • Unforeseen maintenance costs may be incurred and/or technical failure may occur.

    For a full list of risks please see here.

  • How do we manage your bond?

    Downing has significant experience in the energy sector having invested more than £580 million in renewables and energy infrastructure (as at 31 October 2019). 

    Downing manages over £1 billion of capital and has an investment team of over 65 professionals, 18 of whom are dedicated to negotiating, managing and exiting energy and infrastructure investments.

    We arrange the deal between the lenders (you and any other Downing managed funds) and the borrowers. Downing's responsibilities include: 

    • Sourcing the projects
    • Carrying out extensive due diligence
    • Arranging payments to and from the lenders and borrowers
    • Managing the register of bondholders
    • Acting as receiving agent and security trustee
    • Monitoring the investment 
    • Navigating and executing exits

    We will only consider bonds issued by companies that own assets we believe will generate enough revenue and profit to cover interest payments and that have good prospects for repaying the capital lent to them.

  • What should my returns look like?

    You can expect a 4% p.a. return on the bond. Interest is earned from the date your bond certificate is issued until redemption, and is paid twice a year on 30 September and 31 March.

    The maximum term of the bond is 12 months however this bond can be redeemed by the borrower from January 2020 onwards. In the case of an early repayment, you will receive interest up to the early repayment date.

    The Nerth Energy Bond can be held in a Downing Innovative Finance ISA (IFISA), which means that any interest paid on the bond is tax free. 

  • What are the charges?

    Downing will earn a 1.5% p.a. charge based on the size of the bond raise. This charge is contingent on bondholders getting their capital back. 

    Downing also charges the borrower a non-contingent, fixed fee of 0.5% p.a.

    All fees are payable by the borrower and exclude VAT. The advertised interest rate of 4% p.a. is the rate that bond investors receive after any fees. 

We're here to help

If you have any questions, please call us on 020 7416 7780.