Mendip Renewables
Mendip Renewables was established in 2015 as a community benefit society to acquire and operate a 5 MW solar farm in Somerset – Whitelake Solar Farm– and to distribute the profits generated by the scheme for the benefit of the community.
Whitelake Solar Farm is a ground-mounted solar scheme constructed on low grade agricultural land on Bagborough Farm – a dairy farm near the village of Pylle in Somerset – and Lower Easton Farm. For the last three years, Whitelake Solar Farm has been generating an average of over 5,200 MWh of electricity a year, enough to power the equivalent of around 1,460 homes.
Mendip Renewables has paid £49,000 to charity Key4Life in community benefit payments to date with a further £12,000 expected to be paid later in 2021. These funds have gone to Key4Life’s At Risk programme in Somerset and the South West, which helps young men at risk of going to prison to turn their lives around.
Key terms
Issuer
Mendip Renewables Limited
Target amount
£500,000, maximum £900,000
Term
13.5 years, repayable in instalments with the final instalment scheduled for 31 December 2034
Interest
4.75% gross per year, increasing in line with the annual retail price index each year from January 2022. Payable in arrears on 31 December each year (paid net of UK basic rate tax unless held in an IFISA) with the first payment on 31 December 2021. Payment of interest and repayment of capital are not guaranteed.
Early repayment
Mendip Renewables has the right to repay the bond early in part or in full.
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.
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 13.5-year term.
Covenant
A negative pledge regarding other borrowings until the bonds are repaid in full. This prevents Mendip Renewables from taking on any additional secured or other interest-bearing debt in that time.
Minimum raise
£500,000. If less than £500,000 is raised, monies will be returned to investors with no accrued interest.
Timetable
Closes on 31 May 2021, unless fully subscribed earlier or 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.