Investors support power scheme
Hydro project backed by £1.25m crowd bond
Downing Crowd Bonds allow investors to lend directly to businesses via bonds that are secured against a firm’s operational assets.
The platform invests in a wide range of UK business sectors including renewable energy.
It aims to reduce investor risk by enabling Downing Crowd to sell these assets if the borrower, Nightjar, fails to pay interest on the bond for any reason.
The asset-backed Hydro Bond pays a yield of 5.5% over 12 months.
The power station project, based at Inverloch, east of Dalmally, began operating in July with the original development having been funded by Downing Crowd’s wider investment business, Downing LLP.
It has more than a third of its £700m funds under management invested in renewable energy.
The new funds raised by Crowd Bond investors will help support the ongoing operation of the Lochy Hydro Project, which has already made a promising start with electricity generated above forecast for the first three months. The hydro power station is valued at £8.3 million in total, which is based on the cost of construction.
Carl Crompton, director of Nightjar Sustainable Energy, said: “Scotland’s abundant renewable energy resources continue to bring huge opportunities, realised in our latest project on the River Lochy.
“Seeking more traditional forms of funding still proves challenging for many businesses but thanks to the support of our crowdfunding investors we can be confident that the Lochy Project will build on the success of its first few months of operation and go on to become a productive energy source for years to come.”