Ferry Farm Community Solar
Ferry Farm Community Solar Limited, a community benefit
society (Ferry Farm CBS) is a 5MW solar farm located in West Sussex. Ferry Farm
CBS has been generating electricity and income since June 2016 and generates
the equivalent annual electricity consumption of around 1,500 homes. Surplus
income from the project is used to support local community organisations and
projects in the parishes of Selsey and Sidlesham.
To date £135,000 of funding has been provided to support
community projects and tackle fuel poverty in the area. In March 2020 Ferry
Farm CBS turned its resources towards supporting organisations helping those in
the local community facing hardship due to the coronavirus pandemic, lockdown
and recession. Ten days after the lockdown was announced in March, Ferry Farm
CBS launched a £40,000 Corona Crisis Fund.
The bond offer
The money raised through this bond offer will enable Ferry
Farm CBS to complete the refinancing of higher cost loans which were initially
secured to fund Ferry Farm CBS’s acquisition of the solar farm and become its sole
owner. The project has been fully accredited by the government’s Feed-in-Tariff
scheme which guarantees a fixed price (rising with inflation each year) for the
electricity generated by the solar farm for 20 years (ending in 2036).
Ferry Farm CBS 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 Ferry Farm CBS bonds through a Triodos IFISA,
select the ‘Invest within IFISA’ option. This selection will add to your
current year IFISA or will open a new IFISA if you haven’t previously opened
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.
Ferry Farm Community Solar Limited (Ferry Farm CBS)
4% gross per year, increasing in line with the annual retail price index each year from April 2022. 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 2021. Payment of interest and repayment of capital are not guaranteed.
Ferry Farm CBS has the right to repay the bonds in part or in full from 31 May 2023.
Second ranking security
The bonds are secured by way of a second ranking charge over the solar farm 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 14.5-year term.
A negative pledge regarding other borrowings until the bonds are repaid in full. This prevents Ferry Farm CBS from taking on any additional secured or other interest-bearing debt in that time.
£850,000. If less than £850,000 is raised, monies will be returned to investors with no accrued interest.
Triodos Bank has committed buy up to 425,000 bonds on a match investment basis through its bespoke TCRUF (Triodos Community Renewables Underwriting Facility) and therefore a minimum of £425,000 is required to be raised from individual investors through the bond offer for bonds to be issued. TCRUF will be utilised on 18 January 2021 (or later if extended) if less than £850,000 has been raised from individual investors.
Closes on 18 January 2021, unless fully subscribed earlier or the offer is extended. Bonds are allotted 15 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.