Invest in an operational community hydro power scheme

Renewables bond
Church Minshull Community Hydro 2022
IFISA eligible
Minimum Investment £50
Term 16 Years
Interest 4.25% per year (inflation linked)
£560,000
Raised
£560,000
Target
100%
£560k min. raise

This project generates a positive impact by allowing us to harness the power of the River Weaver to produce a significant amount of clean renewable electricity, as well as helping migratory fish species access prime spawning and juvenile habitat. The refinancing will enable us to begin making community payments which benefit the natural environment in the local area.

Dave Mann, Church Minshull Community Hydro

Church Minshull Community Hydro

Church Minshull Community Hydro was established as a Community Interest Company in 2017 by a team of experienced hydro developers to build a 80 kW hydro power scheme on the River Weaver in Church Minshull, East Cheshire. The scheme was commissioned in November 2018 and has been operating for 3.5 years.

The scheme is accredited to benefit from the government’s Feed-In-Tariff (FIT) for renewable energy projects, which guarantees a fixed price (rising with inflation each year) for the electricity generated for 20 years from 2018. In addition to the FIT income, the electricity generated by the project is sold via a power purchase agreement (PPA).

The scheme was set up as a community interest company to use a proportion of its profits to benefit the local community in Cheshire and the natural environment. The company has already carried out native tree planting at the site and made improvements to the water supply to a local pond to enhance biodiversity.

The bond offer

The construction of the Church Minshull scheme was financed with £635,000 of capital raised through a bond offer promoted by Triodos Corporate Finance in 2017. The directors are seeking to raise £560,000 to refinance the 2017 bonds of which there are £625,000 outstanding. The remaining £65,000 of 2017 bonds will be repaid using a director’s loan and cash in the company.

IFISA eligible

Church Minshull bonds are eligible to held in a Triodos Innovative Finance ISA (IFISA). The IFISA is a type of ISA that allows you to hold crowdfunded debt securities such as this bond. As with all ISAs, there are eligibility criteria and you receive interest tax-free. ISA eligibility does not guarantee returns or protect consumers from losing their money.

To invest in Church Minshull bonds through a Triodos IFISA, select the ‘Invest through IFISA’ option. This selection will add to your current year IFISA or will open a new IFISA if you haven’t previously opened one.

Transferring an existing ISA

If you want to invest by transferring an existing ISA to a Triodos IFISA you must first request the transfer. You can do this under ‘Account’ once you’ve become a registered user of the platform. Your ISA transfer must be completed first, before you make an application for bonds.

Key Terms

Issuer

Church Minshull Community Hydro (“Church Minshull”)

Target amount

£560,000

Term

16 years, repayable in annual instalments with the final instalment scheduled for 30 June 2038. 

Minimum investment

£50 

Interest

4.25% gross per year, increasing each year from 1 July 2023 in line with the annual retail price index. Payable in arrears on 30 June each year (net of UK basic rate tax unless held in a Triodos Innovative Finance ISA when interest will be paid gross) with the first payment on 30 June 2023. Payment of interest and repayment of capital are not guaranteed.

Early repayment

Church Minshull has the right to repay the bond in part or in full from 30 June 2023.

Security

The bonds are secured by way of first ranking charge over all of the assets of the company but this asset security does not mean that capital or interest payments are guaranteed in any way. An independent security trustee will be appointed to represent the bondholders’ security interests.

Transferability

Bonds are transferable but are not listed on any investment exchange which means that bondholders will have to find a willing buyer and agree a purchase price with them, which in practice may not be easy. Investors should be prepared to hold the bonds for their full 16-year term. 

Covenants

A negative pledge regarding other borrowings until the bonds are repaid in full. This prevents the company from taking on additional debt in that time other than the £120,000 of loans being injected as part of the refinancing.

A debt service reserve of £60,000 to be held by the company until the bonds are repaid in full.

Whilst the bonds remain outstanding, repayment of any directors’ loans and payment of dividends to any shareholder are only permitted subject to the retention of a minimum cash balance of £65,000 (excl. the 
debt service reserve) and no repayments are allowed for the first two years. No repayments of the debt service reserve loan are allowed until the bonds are repaid in full.

Minimum raise

£560,000. If less than £560,000 is raised, monies will be returned to investors with no accrued interest.

Timetable

Closes on 14 July 2022, unless fully subscribed earlier or the offer is extended. Bonds are allotted 14 days after close and investors start to accrue interest from that date. 

Capital at risk - warning

Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed. Investors should read the offer document in full, including the risks section, before deciding whether to invest. 

Please note that payment of interest and repayment of capital are not guaranteed and are dependent on the successful operation of Church Minshull Community Hydro's scheme.

Offer is on waiting list

Waiting list

This project generates a positive impact by allowing us to harness the power of the River Weaver to produce a significant amount of clean renewable electricity, as well as helping migratory fish species access prime spawning and juvenile habitat. The refinancing will enable us to begin making community payments which benefit the natural environment in the local area.

Dave Mann, Church Minshull Community Hydro

Church Minshull Community Hydro

Church Minshull Community Hydro was established as a Community Interest Company in 2017 by a team of experienced hydro developers to build a 80 kW hydro power scheme on the River Weaver in Church Minshull, East Cheshire. The scheme was commissioned in November 2018 and has been operating for 3.5 years.

The scheme is accredited to benefit from the government’s Feed-In-Tariff (FIT) for renewable energy projects, which guarantees a fixed price (rising with inflation each year) for the electricity generated for 20 years from 2018. In addition to the FIT income, the electricity generated by the project is sold via a power purchase agreement (PPA).

The scheme was set up as a community interest company to use a proportion of its profits to benefit the local community in Cheshire and the natural environment. The company has already carried out native tree planting at the site and made improvements to the water supply to a local pond to enhance biodiversity.

The bond offer

The construction of the Church Minshull scheme was financed with £635,000 of capital raised through a bond offer promoted by Triodos Corporate Finance in 2017. The directors are seeking to raise £560,000 to refinance the 2017 bonds of which there are £625,000 outstanding. The remaining £65,000 of 2017 bonds will be repaid using a director’s loan and cash in the company.

IFISA eligible

Church Minshull bonds are eligible to held in a Triodos Innovative Finance ISA (IFISA). The IFISA is a type of ISA that allows you to hold crowdfunded debt securities such as this bond. As with all ISAs, there are eligibility criteria and you receive interest tax-free. ISA eligibility does not guarantee returns or protect consumers from losing their money.

To invest in Church Minshull bonds through a Triodos IFISA, select the ‘Invest through IFISA’ option. This selection will add to your current year IFISA or will open a new IFISA if you haven’t previously opened one.

Transferring an existing ISA

If you want to invest by transferring an existing ISA to a Triodos IFISA you must first request the transfer. You can do this under ‘Account’ once you’ve become a registered user of the platform. Your ISA transfer must be completed first, before you make an application for bonds.

Key Terms

Issuer

Church Minshull Community Hydro (“Church Minshull”)

Target amount

£560,000

Term

16 years, repayable in annual instalments with the final instalment scheduled for 30 June 2038. 

Minimum investment

£50 

Interest

4.25% gross per year, increasing each year from 1 July 2023 in line with the annual retail price index. Payable in arrears on 30 June each year (net of UK basic rate tax unless held in a Triodos Innovative Finance ISA when interest will be paid gross) with the first payment on 30 June 2023. Payment of interest and repayment of capital are not guaranteed.

Early repayment

Church Minshull has the right to repay the bond in part or in full from 30 June 2023.

Security

The bonds are secured by way of first ranking charge over all of the assets of the company but this asset security does not mean that capital or interest payments are guaranteed in any way. An independent security trustee will be appointed to represent the bondholders’ security interests.

Transferability

Bonds are transferable but are not listed on any investment exchange which means that bondholders will have to find a willing buyer and agree a purchase price with them, which in practice may not be easy. Investors should be prepared to hold the bonds for their full 16-year term. 

Covenants

A negative pledge regarding other borrowings until the bonds are repaid in full. This prevents the company from taking on additional debt in that time other than the £120,000 of loans being injected as part of the refinancing.

A debt service reserve of £60,000 to be held by the company until the bonds are repaid in full.

Whilst the bonds remain outstanding, repayment of any directors’ loans and payment of dividends to any shareholder are only permitted subject to the retention of a minimum cash balance of £65,000 (excl. the 
debt service reserve) and no repayments are allowed for the first two years. No repayments of the debt service reserve loan are allowed until the bonds are repaid in full.

Minimum raise

£560,000. If less than £560,000 is raised, monies will be returned to investors with no accrued interest.

Timetable

Closes on 14 July 2022, unless fully subscribed earlier or the offer is extended. Bonds are allotted 14 days after close and investors start to accrue interest from that date. 

Capital at risk - warning

Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed. Investors should read the offer document in full, including the risks section, before deciding whether to invest. 

Please note that payment of interest and repayment of capital are not guaranteed and are dependent on the successful operation of Church Minshull Community Hydro's scheme.