Assetz Capital closes Green Energy Account
ASSETZ Capital has permanently closed its Green Energy Account (GEA) after struggling to find new loan flow.
The peer-to-peer lender paused new investment going into the renewable energy-focused account last year, citing a lack of suitable loans after government subsidies were cut.
The platform had said last year that it planned to deliver new loan flow into the GEA and hoped to reopen the account at its current seven per cent target rate.
“We have explored a number of options to deliver new renewable energy loan flow into the GEA, and as a result and whilst it is not an easy decision for us to make, we have decided to permanently close this account to new investment due to lack of new loan origination,” the lender said in a note to investors.
“Market conditions in the renewables sector have changed significantly since the GEA was introduced.
“The reduction in substantial renewable energy subsidiaries available for newly constructed wind turbine projects have dramatically reduced the development pipeline, meaning it has become increasingly challenging to supply new loan flow for our green energy investors.”
Existing loans within the GEA will continue to earn interest, pay down capital or go through a recovery process where necessary, Assetz Capital said.