Empower Community Foundation
Empower Community Foundation (Empower) was founded in 2011 and
is a charity established to accelerate the transition to a sustainable society
by focusing on the climate emergency, fuel poverty and supporting community
development. Empower manages community-benefit renewable energy projects
and distributes income surplus generated in the projects back to communities
through grant programmes.
Empower owns two 5MW solar parks, Drove Lane in Salisbury and
New Mains in Angus near Aberdeen, which it acquired in 2017. Combined the
two solar parks generate the equivalent annual electricity consumption for over
Empower has used grant payments to help fund the outreach
response in Angus which supported people shielding during Covid 19 lockdowns
and has been a long-term funder of a family resilience programme in one of the
most deprived areas of Salisbury.
Empower Community Foundation (Empower)
16 years, repayable in instalments with the final repayment on 31 May 2038
4.25% gross per year, increasing in line with
the annual retail price index each year from June 2023. Payable in arrears on
31 May each year (paid 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 31 May 2023. Payment of interest and repayment of capital are not
Empower has the right to repay the bonds early in part
or in full.
The bonds are secured by way of a second ranking
charge over the solar park assets behind Triodos Bank’s first ranking charge. Asset
security does not mean that capital or interest payments are guaranteed in any
way. In the event of any wind-up or liquidation Triodos Bank as senior lender
will be repaid first and has full control in a default or enforcement scenario
until it is repaid in full.
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.
A negative pledge regarding other borrowings
until the bonds are repaid in full. This prevents Empower from
taking on additional debt in that time.
£2,350,000. If less than £2,350,000 is raised, monies will be returned to investors with no accrued interest.
The offer will have two closes, the first once £2,350,000 has been raised and the second once £4,700,000 or the required amount to fully refinance the existing facility has been raised. 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.