Types of Debenture

We offer a variety of different Debenture types across our range of energy projects.

The specifics of the Debenture are unique to each investment, but each type has common features and benefits which we’ve outlined below. You can get more details on the tax treatment for the investment income from the different types of Debentures in our Tax FAQs.

  • Variable Return Debenture

    The income you receive on top of your regular capital repayments is directly linked to how the investment performs.

    The Offer Document provides details of the estimated returns, which are based on a number of assumptions including: the annual energy production, the price received for the electricity generated, and other costs. This means returns can vary from period to period based on the energy generated as well as other things like costs.

  • Fixed Return Debenture

    The income you receive on top of your regular capital repayments is fixed at the outset.

    The amount of interest income you receive is not directly linked to the amount of energy produced.

  • Income Growth Debenture

    The income you receive on top of your regular capital repayments is fixed at the outset (like a Fixed Return Debenture) but it increases annually at a defined rate for the life of the investment.

    Similar to a Fixed Return Debenture, the interest income you receive is not directly linked to the amount of energy produced.

  • Inflation Linked Debenture

    The income you receive on top of your regular capital repayments is linked to inflation each year. The Offer Document gives details of how the inflation link is calculated for each individual investment.

    Similar to a Fixed or Income Growth Debenture, the amount you get back is not directly linked to the energy produced..

  • Short Term Debenture

    Short Term Debentures usually have terms of 1 - 5 years, as opposed to 15 - 20 years for our other Debenture types, so they have a different repayment structure.

    They pay a fixed interest rate for the period of the Debenture, and repay capital at the end of the term. The interest paid is not linked to the performance of the underlying project (as it is usually still in construction phase) but there are different risks that can affect your return on this Debenture type, which are outlined in the individual investment Offer Document.

As with any investment product there are risks. Part or all of your original invested capital may be at risk and any return on your investment depends on the success of the project invested in. You should be prepared to hold Abundance investments for their full term (and many will have terms of more than 15 years). Abundance investments may not be readily realisable (and their value can rise or fall). They may be secured or unsecured, and where they are secured this does not ensure repayment. Estimated rates of return can be variable and estimates are no guarantee of actual return. Specific risks will apply in relation to each product. Consider all risks before investing and read the Offer Document for each investment.