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Westminster Green Investment 2028

Funding green energy and cutting energy use in council-owned buildings.

Interest rate 4.2% a year
Term 5 years
Total Invested £1m
483  investors
Maturity date 30 Jun 2028
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About Westminster City Council

Westminster City Council is committed to taking action on climate change. They declared a climate emergency in 2019, and have already invested in cutting their own emissions. But they also want to support residents and local businesses to make a positive impact in their neighbourhoods, by reducing their climate impact and improving the local environment.

How did the council use the money raised?

The money raised from this investment has been allocated to finance green projects from the council's climate action plans, focused on energy efficiency projects on Council owned buildings. These include:

  • Solar PV
  • LED Lighting
  • Building fabric improvement
  • Glazing, heating, cooling and insulation improvement

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 Westminster City 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.

Solar installed on council housing at York Way
The council has been installing solar power on council housing across the city

Key terms

BorrowerWestminster Council
Use of funds

To finance Eligible Green Projects from the Green Finance Framework but specifically focused on energy efficiency projects on Council owned buildings including, but not limited to:

  • Solar PV
  • Led Lighting
  • Building fabric improvement
  • Glazing, heating, cooling and insulation improvement
Interest rate4.20% 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 2028
Capital repaymentRegular instalments
Offer open date13 March 2023
Offer close date13 June 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 30 June 2023.
Interest periodsFrom 1 July to 31 December and 1 January to 30 June each year, starting from 1 July 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

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
2 January 2024 £90.81 £21.17 £111.98
1 July 2024 £92.74 £19.04 £111.78
31 December 2024 £94.71 £17.28 £111.99
30 June 2025 £96.72 £15.03 £111.75
31 December 2025 £98.77 £13.23 £112.00
30 June 2026 £100.87 £10.96 £111.83
31 December 2026 £103.02 £9.00 £112.02
30 June 2027 £105.21 £6.71 £111.92
31 December 2027 £107.44 £4.59 £112.03
30 June 2028 £109.71 £2.29 £112.00
Total £1,000.00 £131.48 £1,131.48