Good Energy launches second bond to invest in growth
Good Energy Group PLC (“Good Energy” or the “Company”), the AIM-listed renewable energy supply and generation company, today announces the launch of its second corporate bond with a coupon of up to 5% (“Good Energy Bonds II” or “Bonds II”).
- Good Energy Bonds II offer a coupon of 4.75% gross per annum, to be paid semi-annually
- In addition, any Good Energy customer investing in Good Energy Bonds II will be paid at maturity the equivalent to 0.25% for each year of being a customer and a bondholder
- Bonds II have an initial term of four years
- Investments in Bonds II can be made in multiples of £250
- Available to UK resident individuals aged 18 or over, companies, trusts, charities or other legal entities resident in the UK for corporation tax purposes, Bonds II are SIPP compliant
- Investors in Good Energy’s first corporate bond will be able to roll over some or all of their investment into Bonds II, receiving their existing higher interest rate until 22 November 2017, the maturity date of the Good Energy Bonds I
Good Energy was founded 18 years ago with the aim of helping homes and businesses to be part of a sustainable solution to climate change. Good Energy supplies electricity throughout the British Isles from 100% renewable natural resources like wind, sunshine and rain. In 2016, the Company launched its carbon neutral gas offering, and now supplies renewable electricity to over 71,400 homes and businesses and carbon neutral gas to over 44,100 households.
Good Energy has more than doubled its revenues and profits since 2013, when it launched its first corporate bond, and last year delivered revenue growth of 41% to £90.1 million and EBITDA growth of 39% to £10.1 million. The first corporate bond raised £15 million in an oversubscribed offer, and the proceeds were primarily used to support the development of solar farms that supply electricity to tens of thousands of UK homes.
The Company is now seeking to raise £10 million via a second corporate bond, up to an over-subscription maximum of £20 million, as part of a diversified funding strategy that seeks to provide customers and investors with the opportunity to support a socially responsible renewable energy company in its growth ambitions to transform the way the UK sources, uses and interacts with energy. The proceeds will help to fund Good Energy’s next phase of growth and ability to continue innovating for a cleaner, greener and more prosperous world for future generations.
Juliet Davenport, OBE, Founder and CEO of Good Energy commented:
“In the four years since we launched our first corporate bond, Good Energy has grown significantly and successfully adapted to the changing energy and regulatory environment of the UK.
New technologies and the way we use energy are bringing a modern, decentralised, low carbon structure to the UK energy industry. We are excited about this evolution and the opportunities it creates, and we believe Good Energy is ideally placed to thrive in this new landscape. In addition to growing our core generation and supply business, we are focusing on developing sustainable energy solutions in areas such as energy storage, electric vehicle networks and green business consultancy to support consumer and business needs in this new environment.
Good Energy has a long history of customer ownership and we are continuing this with the launch of Good Energy Bonds II, which will be used to develop renewable energy projects and broader corporate initiatives to fuel the future growth of the Company.
Our strategy is clear – deliver sustainable, profitable growth by understanding and meeting our customers’ needs. We believe this aligns with not only the interests of our investors and customers but ultimately our purpose of supplying 100% renewable and carbon neutral solutions to UK customers.”
Applications for the offer are due to close on 5 June 2017.
For more information on the Good Energy Bonds II, please see goodenergy.co.uk/new-bond.
Capitalised terms shall have the same meaning as in the Invitation Document unless the context requires otherwise.
This communication, which is a financial promotion for the purposes of Section 21 of the Financial Services and Markets Act 2000 (as amended) (“FSMA”), is issued by the Company which accepts responsibility for the information contained herein. This communication has been approved as a financial promotion for UK publication by Arden Partners plc of Arden House, 17 Highfield Road, Edgbaston, Birmingham, West Midlands, B15 3DU, which is authorised and regulated by the Financial Conduct Authority (“FCA”) to conduct investment business. Arden Partners plc is registered on the FCA’s Register with registered number 214032.
If you are in any doubt about the action you should take or the contents of this communication, you should contact an appropriate professional adviser authorised by the FCA under the Financial Services and Markets Act 2000 (“FSMA”) to conduct investment business and who specialises in advising on investments in shares, bonds and other securities, including unlisted securities.
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