Understanding the risks

As with any investment product, there are risks. The Offer Document will cover the risks specific to an individual project, but it is also important you understand the following general risks that apply to our Debentures.

Will I get my original investment back?

There is a risk, if something goes wrong or if the energy project fails during the life of the Debenture, that you may not get back all or any of your original investment.

The sorts of things that could result in an energy project getting into trouble are:

  • Extended periods of lower than expected energy production
  • Extended operational failure not covered by normal maintenance warranties and contracts
  • An extended period of deflation
  • An extended significant collapse in the price of energy
  • Delays in the construction of the project (in the case of the Debenture being used to fund project construction)

There are also specific risks that relate to each individual project, so please read the risks section of the Offer Document before you decide to invest.

Debentures are long term investments

Depending which energy project you choose, your Debenture will usually have a term period of 15 - 20 years (though some may be shorter term).

Debentures are transferable which means if you want to get your money back you may be able to sell them, though there is no formal regulated market on which you can do so. But remember if you are forced to sell them in a hurry or if a Debenture has consistently underperformed, there is a risk you may not get all of your money back.

To help you sell Abundance provides a Bulletin Board which enables buyers and sellers to connect and trade Debentures. If you want to learn more take a look at the Selling Debentures section of our FAQs to understand how the Bulletin Board works.

Please note

Abundance is not authorised to provide financial advice to investors and does not do so. It is therefore your responsibility to do your homework on whether to invest in a specific Debenture or not. If you do not understand anything regarding a particular investment please seek independent financial advice.