TRIODOS Bank has added a social enterprise bond to its crowdfunding platform with the lowest minimum investment it has offered to date.
The self-styled ethical bank launched the bond offer on Monday, which will allow investors to support social enterprise the Bristol Wood Recycling Project (BWRP). The project is aiming to raise £430,000 to buy its current premises, expanding its operations and making cost savings over the long term.
The bond will pay gross interest of four per cent per year, with a minimum investment of £50. It has a six-year term and is repayable in full on 15 March 2025. The bonds are eligible to be held in an Innovative Finance ISA.
BWRP aims to reduce the estimated five million tonnes of wood waste which goes to landfill in the UK each year. It it works with a team of around 40 volunteers to collect, repurpose and sell wood that would otherwise go to waste, and says it has saved around 500 tonnes of wood a year by turning it into furniture for resale, recycling it or using it for heat reclamation at power stations. Volunteers include the long-term unemployed, those with substance abuse problems, individuals with a learning disability or mental health issues.
Ben Moss, co-founder and director of the project, said that purchasing their site from the proceeds of the bond offer will help them expand their business and provide jobs.
“Crowdfunding through Triodos will help us to raise the funds quickly and efficiently and the low minimum investment of £50 means we should attract a wide range of investors to join our community and help us create a positive future,” he added.
Last year, Bristol-based Triodos became the first UK bank to launch an investment crowdfunding platform.
“We are proud to be supporting Ben and the team at Bristol Wood Recycling Project,” said Dan Hird (pictured), the bank’s head of corporate finance.
“The business has an excellent reputation and its work in reducing and recycling waste wood, as well as its volunteer programme, make it an ideal fit with Triodos Bank’s mission to make money work for positive social, environmental and cultural change.
“With a £50 minimum investment, we are able to meet BWRP’s objectives of making the bond offer accessible to a wide community of potential investors, supporters and future customers.”
Read more: Why it’s worth looking at crowd bonds