thumbnail of Lewisham Climate Action Investment 2028

Lewisham Climate Action Investment 2028

Interest rate 4.3% a year
Term 5 years
Total Invested £659k
602  investors
Maturity date 31 Aug 2028
thumbnail of Lewisham Climate Action Investment 2028

About Lewisham Council

Lewisham Council is committed to tackling the Climate Emergency and aims to make Lewisham a net zero borough by 2030. They declared a climate emergency in 2019 and have already taken important steps to cut carbon, with borough-wide emissions having fallen by 44% since 2005.

One of the council’s key strategic priorities is helping decarbonise transport — a sector which makes up 35% of emissions across the borough.

How did the council use the money raised?

The money raised from this investment has been allocated by the council to fund a number of initiatives, including:

  • Helping fund more public EV charginig facilities
  • Investing in support for active travel, such as secure cycle storage
  • Funding upgrades to walking and cycle routes.

This investment is Green Loan Principles compliant

This investment has been issued under a Green Finance Framework. This is a voluntary standard which sets out how Lewisham Council intends to manage its green local authority securities in the future, and outlines how they will meet the Green Loan Principles. This assures investors that funds raised can only be used to help them deliver on eligible green projects from within this framework, and Abundance will monitor the use of funds across the investment term to ensure the principles are being adhered to.

Lewisham Council is investing in sustainable transport across the borough
Lewisham Council is investing in sustainable transport across the borough

Key terms

BorrowerLewisham Council
Use of funds

To finance Eligible Green Projects from the Green Finance Framework but specifically focused on sustainable transport measures as part of the council’s Active Travel Fund.

Interest rate4.30% a yearThis is the interest rate paid by the Local Authority to lenders and does not include the cost of fees paid to Abundance in its role as Arranger and Agent.
Term period5 years after end of 'Initial interest period'
Maturity date31 August 2028
Capital repaymentRegular instalments
Offer open date22 May 2023
Offer close date11 August 2023
Minimum borrowing amount£5.00
Maximum borrowing amount£1,000,000.00
Initial interest periodThis will start on the date the lender makes their investment and ends on 31 August 2023.
Interest periodsFrom 1 September to 28 February and 1 March to 31 August each year, starting from 1 September 2023.
Return structure10 semi-annual returns of Interest and Capital on the last day of each Interest Period with the last one, on the Maturity Date.
Arrangement fee0.50% of total amount raisedThis is the fee paid to Abundance in its role as Arranger. The interest rate above is quoted after fees.
Management fee0.05% of total amount raised per yearThis is the fee paid to Abundance in its role as Agent. The interest rate above is quoted after fees.
Early repayment optionsThe local authority can repay early on any payment date. An early repayment fee equal to 12 months’ Interest will apply.

Documents

Green Finance Framework
Download PDF Together with the key terms, the loan conditions form the legal agreement that define the terms of the investment.
Loan Conditions
Download PDF This document provides the overarching criteria and guidelines for how the council will raise funding for eligible green projects and ensure ongoing compliance with the Green Loan Principles.

Payment schedule

This table gives a breakdown of what is due to be paid back on this investment, based on an example investment of £1,000.

Payment schedule table
Payment date Capital repayment Interest Total
29 February 2024 £90.60 £21.44 £112.04
2 September 2024 £92.57 £19.71 £112.28
28 February 2025 £94.58 £17.41 £111.99
1 September 2025 £96.64 £15.65 £112.29
2 March 2026 £98.74 £13.34 £112.08
31 August 2026 £100.89 £11.42 £112.31
1 March 2027 £103.08 £9.08 £112.16
31 August 2027 £105.33 £6.99 £112.32
29 February 2028 £107.62 £4.66 £112.28
31 August 2028 £109.95 £2.38 £112.33
Total £1,000.00 £130.57 £1,130.57

Updates

These updates tell the story of the investment over its life and include information reported to investors by the company or council behind the investment. The updates are provided for informational purposes only and do not constitute an inducement or invitation to invest. Information provided at the time of publishing may no longer be accurate.

Please read the full update here

An investment return from Lewisham Climate Action Investment 2028 was paid today.

This first payment covers the interest earned in the initial period from the date an investor placed their investment to 31 August 2023. Future interest payments from this investment will be every 6 months.

This investment closed today.

Please read the full update here

Please read the full update here

Lewisham Climate Action Investment 2028 opened for investment today.