Distgen Westray
Distgen (the trading name for the group parented by Participa Ltd) is an independent, privately-owned UK onshore wind energy developer founded in 2005. It owns and operates wind turbines across south west England, Cumbria and Orkney.
Distgen Westray, a wholly owned subsidiary of Participa Ltd, operates a turbine on Westray in Orkney. Due to favourable natural conditions, the Orkney islands are home to the highest concentration of small and micro wind turbines in the UK, as well as several larger community owned and commercial turbines.
Distgen’s turbine in Westray, was installed under the Feed-in-tariff (FiT) scheme in 2013 and the subsidy will remain in place for the entire bond period. It has generated 1,520 MWh of clean, green electricity each year on average in recent years – enough to power the equivalent of 560 homes.
The bond offer
Distgen Westray is raising funds through this bond offer to repower its turbine in Orkney and to seed repowering opportunities in other group subsidiaries.
Repowering involves upgrading the technology and infrastructure of existing wind farms – in this instance the nacelle and blades - to extend their lifespan, reduce operational and maintenance costs and increase their energy output. Distgen expects the Westray repowering to increase generation by over 13%. Repowering reduces the overall environmental and ecological footprint of wind energy production and supports global efforts for clean energy by reusing and repurposing components. Repowering is essential to the sector as finite land will ultimately limit new sites, placing emphasis on the importance of optimising existing wind farms.
IFISA eligible
Distgen Westray bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). 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 all of money they have invested.
To invest in Distgen Westray 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
Distgen Westray LGC Limited (or “Distgen Westray”)
Term
8 years, repayable in eight equal annual instalments with the first repayment on 31 March 2026 and the final repayment on 31 March 2033.
Interest
7.75% gross per year. Payable in arrears on 31
March each year (paid net of UK basic rate tax unless held in an IFISA) with
the first payment on 31 March 2026. Payment of interest and repayment of capital are not
guaranteed.
Early repayment
Distgen Westray has the right to repay the bonds without penalty from 31 March 2028.
Security
The bonds are secured by way of a first ranking legal charge over all the assets of the company but this does not mean that capital or interest payments are guaranteed in any way. Triodos Corporate Officer Limited (TCOL) has been appointed as security trustee to represent the bondholders’ security interests. The original V39 turbine will become an asset of the company upon expiry of lease arrangements (no later than November 2028) and as such bondholders will not have recourse to that asset until then. The ability of Bondholders to recover against the turbine assets may be limited due to the nature of the security being taken and operation of law.
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 eight-year term.
Covenant
Distgen Westray LGC Limited is precluded from taking on any external debt (both secured and unsecured) during the bond term. A minimum cash balance of £100,000 will be retained on the balance sheet for 12 months. After 12 months, there is no requirement to maintain cash at £100,000, however, where cash is below that level, dividends to any shareholder, loans to Directors, repayment of outstanding Loans from Directors and payments to related parties are not permitted (aside from Unrestricted Payments as defined in the bond instrument). A breach of any covenant constitutes an Event of Default.
Timetable
Closes on 31 July 2025, 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.
