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Peer2Peer Finance News | September 23, 2019

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Abundance investors energised by Green Deal loans opportunity

Abundance investors energised by Green Deal loans opportunity
Marc Shoffman

MORE THAN 1,250 peer-to-peer investors have backed the company that has taken over the government’s Green Deal loan book.

The Green Deal Finance Company (GDFC) was bought by City investors Greenstone Finance in January and sought up to £5m of funds with a bond issue on the Abundance P2P platform in May.

The offer closes on Monday 31 July and has raised £3.6m so far, offering investors annual returns of 12 per cent for three years.

The average investment to date is around £3,000, while the largest is £95,000.

The Green Deal was launched in 2013 to provide finance to property owners looking to install energy-efficiency measures. But the government pulled the plug on funding in 2015, saying uptake had been lower than expected.

The takeover by Greenstone Finance has provided a new lifeline, and has already started providing Green Deal loans to select households.

Read more: Abundance launches fundraising for UK’s first geothermal plant

“Switching to a better boiler can improve energy efficiency by up to 30 per cent – proving that the simplest solutions can be the most effective,” Bruce Davis (pictured), co-founder and joint managing director of Abundance, said.

“The Green Deal is now back, better than before, to make it easier for ordinary people to make a difference to their homes and the environment, and we expect to see growing numbers of people taking advantage of the unique ability GDFC offers to repay their loans through their energy bills.

“This is the first time Abundance investors have had a chance to put their money directly in a business focusing on energy efficiency, and we’re very pleased with the enthusiastic response we’ve received to this win-win offer. There’s only a few days left to invest, so don’t miss out.”

Read more: Abundance receives £10m boost from IFISA