Back

Telford & Wrekin Climate Action Investment 2027

Supporting climate action for local communities and businesses

Interest rate 2.1% a year

Term 5 years

Total Invested £339k

404 investors

Maturity date 30 Sep 2027

About Telford & Wrekin Council

In 2019, Telford & Wrekin Council declared a climate emergency. Since then, it has committed to making council’s operations carbon neutral by 2030. It established a robust action plan to reach this target and by 2022 had already managed to cut its operational emissions by 58% since 2018/19. Its climate change action planning was independently ranked in the top 3% of local authorities in January 2022.

It launched this loan – the first of its kind in the West Midlands - which allowed local residents and organisations to invest in the borough’s green future, enabling its community to be the driving force behind Telford and Wrekin’s climate action journey.

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 a new round of the council’s hugely popular Climate Change Fund, which offers grants to local organisations and businesses to fund climate measures
Energy efficiency upgrades to its temporary and supported housing accommodation
The electrification of its community minibus fleet.

Telford & Wrekin Council has invested in green energy to benefit residents

Key terms

BorrowerTelford and Wrekin Council

Use of funds

Support local projects from the council’s Climate Change Fund inluding energy efficiency upgrades to its temporary and supported housing accommodation, and the electrification of its community minibus fleet.

Interest rate2.10% 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 September 2027

Capital repaymentRegular instalments

Offer open date19 May 2022

Offer close date29 September 2022

Minimum borrowing amount£5.00

Maximum borrowing amount£500,000.00

Initial interest periodThis will start on the date the lender makes their investment and ends on 30 September 2022.

Interest periodsFrom 1 October to 31 March and 1 April to 30 September each year, starting from 1 October 2022.

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 fee0.25% 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

Loan Conditions

Download PDF Together with the key terms, the loan conditions form the legal agreement that define the terms of the investment.

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 March 2023	£90.49	£10.47	£100.96
2 October 2023	£92.49	£9.57	£102.06
2 April 2024	£94.52	£8.60	£103.12
30 September 2024	£96.60	£7.60	£104.20
31 March 2025	£98.72	£6.55	£105.27
30 September 2025	£100.90	£5.55	£106.45
31 March 2026	£103.12	£4.46	£107.58
30 September 2026	£105.39	£3.40	£108.79
31 March 2027	£107.70	£2.28	£109.98
30 September 2027	£110.07	£1.15	£111.22
Total	£1,000.00	£64.13	£1,064.13