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Southwark Green Investment 1

Green retrofits for schools and leisure centres, active travel measures and LED street lighting.

Interest rate 4.6% a year
Term 5 years
Total Invested £1m
656  investors
Maturity date 30 Jun 2029
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About Southwark Council

Southwark Council is taking urgent action to clean up its air and enhance its natural environment. It has an ambitious strategy and action plan to transform Southwark into a carbon neutral borough by 2030. Its vision aims to reshape the borough into a better place for everyone, delivering improvements in health, raising the standard of homes, creating good green jobs and strengthening its communities.

The council has already cut their emissions since the launch of their climate action plan in 2021, and delivered a number of climate projects - from an innovative heat pump programme for council housing estates, through to replacing over 8,000 light bulbs with LEDs.

How is the council using the money raised?

The money invested will help fund a range of projects from its climate programme. These measures are expected to include:

  • More cycle hangars so everyone has space to store their bicycles safely
  • Speeding up its LED lighting programme, which is cutting carbon emissions from its street lighting
  • Starting a school retrofit programme, including moving to air source heat pumps
  • Kick-starting a green improvements programme on leisure centres, beginning with upgrades to lighting and building management systems.

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 Southwark 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.

LED lighting replacements in Southwark
LED lighting replacements in Southwark

Key terms

BorrowerSouthwark Council
Use of funds

Funding Eligible Green Projects under the Council’s Green Finance Framework, with an expected focus on Green Energy, Clean Transportation and Energy Efficiency.

Interest rate4.60% 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 date30 June 2029
Capital repaymentRegular instalments
Offer open date26 February 2024
Offer close date27 March 2024
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 30 June 2024.
Interest periodsFrom 1 July to 31 December and 1 January to 30 June each year, starting from 1 July 2024.
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% of total amount raisedThere is no Abundance fee on this loan, instead an equivalent fee is being charged to Southwark Council for local engagement support work.
Management fee0% of total amount raised per yearThere is no Abundance fee on this loan, instead an equivalent fee is being charged to Southwark Council for local engagement support work.
Early repayment optionsThe local authority can repay early on any payment date. An early repayment fee equal to 12 months’ Interest will apply.

Documents

Loan Conditions
Download PDF Together with the key terms, the loan conditions form the legal agreement that define the terms of the investment.
Green Finance Framework
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
31 December 2024 £90.08 £23.18 £113.26
30 June 2025 £92.15 £20.75 £112.90
31 December 2025 £94.27 £18.96 £113.23
30 June 2026 £96.44 £16.50 £112.94
31 December 2026 £98.66 £14.54 £113.20
30 June 2027 £100.93 £12.05 £112.98
31 December 2027 £103.25 £9.91 £113.16
30 June 2028 £105.62 £7.43 £113.05
2 January 2024 £108.05 £5.06 £113.11
1 July 2024 £110.55 £2.52 £113.07
Total £1,000.00 £130.90 £1,130.90