thumbnail of Telford & Wrekin Climate Action Investment 2027

Telford & Wrekin Climate Action Investment 2027

Interest rate 2.1% a year
Term 5 years
Total Invested £339k
404  investors
Maturity date 30 Sep 2027
thumbnail of Telford & Wrekin Climate Action Investment 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.
Solar installed on council housing at York Way
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

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 Telford & Wrekin Climate Action Investment 2027 was paid today.

Please read the full update here

An investment return from Telford & Wrekin Climate Action Investment 2027 was paid today.

Please read the full update here

An investment return from Telford & Wrekin Climate Action Investment 2027 was paid today.

This first payment covers the interest earned in the initial period from the date an investor placed their investment to 30 September 2022. 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

Telford & Wrekin Climate Action Investment 2027 opened for investment today.