Energy supplier Our Power looks to raise cash via social bond
A profit-for-good energy supplier that works with social housing providers has launched a “social purpose bond” to help charge up investment.
Edinburgh-based Our Power, which has secured £10 million to date in debt finance, is bringing a three-year, unse- cured bond paying a return of 6.5 per cent via the Ethex platform to raise £4.5m in working capital. The investment will allow the social enterprise to increase its market share.
Launched last year by social housing providers, including housing associations and local authorities, Our Power aims to provide affordable clean energy, while “removing discrimination and poverty from the energy sector”. Unveiling details of the bond yesterday, Our Power said it had received advanced assurance from the taxman that investment in the bond offer would be eligible for social investment tax relief, subject to an investor’s personal circumstances, current legislation and the venture’s compliance with the rules.
The minimum investment that an individual or organi- sation can make is £500 with no set maximum.
Alister Steele, chair and cofounder, said: “This is an exciting time for Our Power. We have 54 social housing providers as members and have established our customer base and business model which is supported by an ambitious five-year plan that is projected to see the business grow to £100m turnover.”