Michelmores advises Triodos on launch of crowdfunding platform
Triodos Bank, one of the world's leading sustainable banks, has launched its own crowdfunding platform, offering a range of bonds and equities issued by organisations focusing on positive social and environmental impact. The platform, www.triodoscrowdfunding.co.uk, is the first to be launched by a bank, and will allow investors to hold the investments in an Innovative Finance ISA (IFISA).
"This was a really exciting project to be involved with, and one that has a direct, positive impact to society and the environment. Not only did we advise on the establishment of the platform, including drafting the terms and conditions, but we also advised on the two bond issues currently on the platform and on their documentation and security. We are delighted that the platform is now live and look forward to continuing to support it as it develops."
The two current investments include Mendip Renewables, which pays 5 per cent a year, increasing in line with RPI inflation and repayable over 17 years. This project aims to take a 5MW operational solar farm in Somerset into community ownership. An estimated £1.4m of profit will be contributed to a community benefit scheme over the life of the project.
The second investment is Rendesco, which is rasing £5.5m to develop green energy from ground source heat pumps and is paying 7 per cent interest per year over a 7-year term. The aim is to develop 100 sites, with a focus on retirement homes and providing low-carbon heating to keep the elderly warm.
Shortly there will be the Thera Trust going live, which provides home for people with complex learning disabilities, which offers 5.5 per cent interest per year over a 6-year term.
Triodos said the investments “have been extensively screened by Triodos for social and environmental impact, the viability of their business model and the credibility of the management team”.
Bevis Watts, Managing Director of Triodos Bank UK, said:
"We’ve been crowdfunding since before it became a well-known term. With the new Triodos Crowdfunding platform we’re recognising the huge potential of crowdfunding and responding to demand for Innovative Finance ISAs. Investors are looking for opportunities that allow them to support progressive companies, social enterprises and charities making a positive impact, while also receiving good long-term returns."
Investments offered on the Triodos platform are not readily realisable, which means that they may be difficult to sell and you may not get back the full amount invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and your capital is at risk and returns are not guaranteed. Repayment of capital and interest or payment of dividends will be dependent on the success of the organisation's business model and past performance isn’t a reliable indicator of future performance. You should always read the offer document in full before deciding whether or not to invest as it will cover risks specific to an individual investment. You can read more about the general risks associated with making these types of investments here. If you are unsure if any of these investments are right for you, you should contact an Independent Financial Adviser.