By Daniel Lanyon on Wednesday 7 February 2018
The firm says lending into the renewable energy space is still underfunded by traditional banks.
Goji has partnered with a specialist alternative investment lender Prestige to launch an ISA-eligible Renewables Lending Bond.
As part of the firm’s strategy to target financial advisers and wealth managers, it will provide intermediaries with exposure to a portfolio of UK renewable infrastructure projects.
The firm says it will also provide UK renewable developers and operators who have experienced a decade of difficulty in obtaining loans from banks with funding.
It will provide a yield of between 5.5 per cent and 6.5 per cent per annum, the firm says, over a three and five year investment term respectively. Interest payments, it adds, will be supported by government subsidies such as Feed-in-Tariffs with loans are originated by Prestige’s credit team which has a 15 year track record in renewables financing. Prestige will cover up to 20 per cent of first losses.
“The availability of dedicated credit for renewable energy sources is already having a positive impact on the UK’s environment and energy security,” said Craig Reeves, Founder of Prestige.
“But the UK still lags behind Europe in the establishment and financing of renewable energy projects, so there is plenty of room for expansion. Investing through the Renewables Bond offers investors an attractive opportunity to bridge this gap whilst providing attractive, steady, socially-responsible returns that back UK businesses,” he adds.
Jake Wombwell-Povey, CEO, Goji, said: “Renewables Lending Bond offers financial advisers and their clients the opportunity to diversify their portfolios and earn attractive returns on heavily secured projects that are managed by a major player in the renewables financing market - all without the exposure to market volatility that comes with traditional fixed income.”