Fife-based TLS Hydro Power Ltd, a renewable energy company which develops, owns and operates a portfolio of hydro power sites across Scotland and England, has today launched a £2.5 million bond issue in partnership with Triodos Bank.
Funds raised will be used to develop new hydro power schemes, including a 1 MW project in neighbouring Perth and Kinross district, construction of which is planned for autumn this year.
TLS Hydro Power Ltd is part of the larger TLS Energy Group, whose activities cover the entire energy supply chain, from renewable energy generation to delivery of energy to the end user. It specialises in redeveloping old sites in disuse or disrepair, such as old mills or weirs, minimising environmental impact.
The group’s retail arm, LoCO2 energy, supplies energy to 8,500 domestic and business customers. LoCO2 energy customers and investors who become customers by 31 March 2016 are being offered an additional 0.25% gross interest per year (interest equivalent to 7.25% gross per year) through the bond issue.
The minimum individual subscription for the bond issue is set at £1,000 however LoCO2 energy customers can invest a minimum of £500.
Currently around 80% of the energy supplied to LoCO2 customers comes from renewable sources – compared to a UK average of 16.7% in the year to 31 March 2014.
TLS Hydro Power Ltd has already developed eight hydro power schemes and has a further site in construction which is expected to become operational later this year. Combined these schemes will generate around 16,000 MegaWatt hours of energy each year – enough to power 4,000 homes.
Dr Bob Middleton, Chief Executive and Founder, TLS Energy Group, said: “TLS Hydro Power has a 15 year track record and I believe this bond issue provides a fantastic opportunity for existing customers and new investors to support our business through the next stage of growth.
“Hydro power is one of the cleanest and most efficient and reliable forms of renewable energy and hydro plants can continue to produce electricity for many decades. ”
Triodos Head of Corporate Finance, Dan Hird comments: “Independent renewable energy producers like TLS Hydro Power Ltd are a fast growing force in the UK energy market and contribute to the UK’s green energy targets.”
TLS Hydro Power Ltd bonds are unquoted securities with a fixed repayment date. Although the bonds will be transferable, investors should be aware that they may not be able to access their capital during the life of the bond. An investment in TLS Hydro Power Ltd bonds is not covered by the Financial Services Compensation Scheme.