Bond snippets: Aussie CBD issues £7.5m corp bond to finance UK RE plans / BVP extends closing for EUR2m+ bond for Nthn Ireland wind

While we report mainly about larger scale climate bonds, we're also seeing more small-scale, retail-focused bond issuance. We aim to cover these on an occasional basis (so let us know your sightings!). Two from the UK this month:

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BusinessGreen reports that Australian renewable energy firm, CBD Energy, has launched a 4-year mini-bond offering to finance UK wind farm projects. The company is looking to raise up to £7.5m at a fixed-rate of 7.5%, aiming to capitalise on the recent boom in small-scale bond issuance in the UK. Minimum investment is £500. The bonds are unsecured corporate bonds for private investors; they have attracted some comment about their high risk nature.

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Dublin company BVP Investments last month raised EUR2m through a loan note for the construction and operation of 250kW wind turbines in Northern Ireland. The loan note has an 8 year tenor with a 10% coupon, with bi-annual capital payments so the full amount is repaid by the end of the term (declining balance method). Unlike the CBD bond, the loan note also has recourse to the project assets.

They got their EUR2m reasonably quickly, so decided to keep going, extending the closing date until 30 June.

BVP says they prefer medium-sized wind projects to wind farms as they are easier to connect to the grid; larger projects cause problems with the existing grid infrastructure. They also receive attractive incentives in the form of Renewable energy Obligation Certificates (ROCs) which can be sold to utilities. The revenue stream is generated via PPA contracts as well as through the sale of ROCS.