Renewable energy company Ecotricity has raised £18.5 million from the third issue of its innovative ecobond concept, and will use the funds to build new green energy projects across the UK – it already operates a number of wind turbines in south west Scotland.
Ecobond-3 offered investors a return of 5.5% per annum (or 6.0% per annum for Ecotricity customers). The company will use the funds raised to build six renewable energy projects already in the first stages of construction – between them they will generate enough green energy to power over 10,000 homes each year.
Ecotricity founder Dale Vince said: “This is our third and biggest ecobond yet and it’s quite an incredible outcome given the background we’ve been working in these last few months.
“When we launched the first ecobond five years ago, it was a fairly radical idea – we wanted to give people the chance to share in the financial benefits of the ‘green energy revolution’ as well as cutting out the banks that generally charge borrowers more than they pay investors.
“This latest bond is also about democratising the energy sector and the financial sector at the same time – giving people the chance to join us in our work as well as directly accessing the kind of interest rates that banks charge but don’t pay.”