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Peer2Peer Finance News | November 21, 2017

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Downing Crowd launches £3.95m biogas bond

Downing Crowd launches £3.95m biogas bond
Marc Shoffman

PEER-TO-PEER bond platform Downing Crowd has launched a new project to raise £3.95m for renewables firm Warren Energy.

The Norfolk-based energy company is offering investors 6.75 per cent over the term of the bond, which is due to mature on September 28 2019.

The power plant generates biogas through anaerobic digestion, a process that breaks down organic materials, without the requirements of oxygen.

Biogas can be used as both fuel and fertiliser and Warren Energy receives payment for exporting it to the grid as well as generating income for biogas and the electricity generated that goes back into the grid.

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“The renewable energy sector continues to produce really exciting opportunities, particularly in emerging technology such as anaerobic digestion,” said Philipp Lukas, director of Warren Energy.

“Income streams from energy generation are well established and the sector continues to build on the strong growth shown in previous years, both of which can provide predictable revenue from an investor’s perspective.

“But just as an importantly, this type of opportunity also gives people a chance to see where their money is going and know it is helping contribute to a sustainable future.”

Read more: Downing launches crowd bond IFISA

Julia Groves (pictured), head of crowdfunding for Downing, said the platform is proud of its commitment to renewable energy.

“There is still a lack of awareness which all too often sees investors lump different types of crowdfunding together as ‘extremely risky’ and our industry needs to do more to highlight that crowd bonds, in particular, are a simpler type of investment,” she said.

“Moreover, not only are crowd bonds uncorrelated to main markets, the returns on offer are clearly attractive compared to meagre interest rates on cash savings, provided of course investors are willing to take on an element of additional risk.

“There is also the opportunity to earn interest on crowd bonds tax free through the recently launched Innovative Finance ISA, and help everyday investors make a decent return on their money.

“We are immensely proud of our involvement with the renewable energy sector and we are confident that this latest project with Warren Energy will go on to deliver an important contribution to the small-scale renewable energy sector for years to come.”

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