On Green Crowd Bonds, our monitoring fee is contingent on investors getting their capital and interest back.
Green Crowd Bond No 1
The investment strategy will be to diversify investors’ exposure by investing across 4-5 underlying investments. Furthermore the diversification will be divided into two distinct asset classes:
- Renewable energy projects and
- Growing and well-established trading businesses with strong balance sheet equity
The renewable energy projects provide asset backing for the investment. The trading businesses are selected for their strength to achieve the investor return. Together they provide a complementary investment proposition.
This is an opportunity to lend to Green Crowd Limited, a company that will own a portfolio of operational renewable assets and operational sustainable businesses . This asset-backed Green Bond will offer investors a chance to earn 5% p.a. over a period of up to 5 years.
About Green Crowd Bonds
Green Crowd Bonds allow you to lend money to businesses by investing in a bond (a simple debt instrument). In return, you can earn interest on the amount you lend – typically 4% – 7% p.a.
Bonds are technically transferable, but there is no established secondary market so you should assume that you need to hold your Green Crowd Bonds for the full term.
The borrowers tend to be relatively mature businesses. As they are more established than start-ups they typically have lower risk profiles, which means they can attract cheaper funding to replace more expensive finance taken earlier in the business lifecycle. Funds raised through our bonds are usually used to refinance some of that more expensive funding.
Green Crowd Bonds are often secured against a business’ tangible assets (such as wind farms, solar portfolios and nursing care homes) to help reduce the risk for investors.