Second community municipal investment goes live on Abundance

A second community municipal investment (CMI) crowd bond has gone live on Abundance today (25 August) as the product, used to fund local projects, becomes more widely used.

Warrington Borough Council is looking to raising £1m by offering a CMI through the crowd bonds platform.

It will help fund a multi-million pound innovative solar and battery storage project near Cirencester.

Investors can receive 1.2 per cent a year in half yearly payments over its five-year term, although holdings can be sold on to others at any time free of charge through the Abundance secondary market.

The minimum investment is just £5.

Read more: Could local councils play a bigger role in P2P funding?

“This is a really exciting project, which forms part of our ongoing programme to mitigate climate change and carbon emissions, protect council services, create employment opportunities and reduce fuel poverty,” Russ Bowden, leader of Warrington Borough Council, said.

“Warrington’s CMI gives people a fantastic opportunity to make a positive contribution towards a carbon neutral future while providing them with a financial return and deeper engagement with one of Britain’s most environmentally-focused local governments.”

It follows the launch of West Berkshire’s CMI in July which is now more than 50 per cent subscribed by more than 400 investors.

A third CMI, from Leeds City Council, is also in the pipeline.

“Following on from the success of the West Berkshire CMI, Warrington’s green bond is a perfect example of how enlightened councils up and down the UK can supercharge their efforts to tackle climate change by working in partnership with the public – whether in the local area or further afield,” Bruce Davis, managing director of Abundance, said.

“Local government green bonds are a practical and already popular way for people to be part of building back greener.”