ETHICAL lender and investor Triodos Bank has entered the peer-to-peer space with the launch of a platform offering investment in renewable and social opportunities.
The company, which only lends money to businesses deemed to be making a positive, social and cultural impact, is offering a range of crowd bonds through a new Triodos Crowdfunding brand.
It currently has one live opportunity from Mendip Renewables, a fully operational solar farm looking to raise £1.8m through a bond.
Investors can receive five per cent interest for 17 years and all projects can be held in an Innovative Finance ISA (IFISA) wrapper.
“Solar power is one of the cleanest sources of energy available, generating electricity with no pollution and with minimal environmental impact,” Jonathan Thompson of Mendip Renewables, said.
“As a community benefit society, our solar scheme not only enables us to create new, renewable energy, but also ensures that the financial benefit is directed to the areas that need it most in our local community.”
A spokesperson for Triodos Bank said full details of the launch will be revealed in early February.
The platform will compete against other ethical lenders in the P2P space such as Abundance, which has worked with Triodos to help raise funds for businesses in the past.
“Green and ethical crowdfunding investment really is in the pink,” Bruce Davis, co-founder of Abundance, said.
“Triodos have obviously been inspired by their experience of working with Abundance and the success of our joint effort to raise £10m of capital for the award winning Thrive Renewables.
“Overall, Abundance has now raised more than £64m in crowdfunded ‘win win’ investments, putting in the groundwork for what is now one of the most vibrant sectors of the P2P and crowdfunding industry.”