Big60Million launches UK’s first certified climate bond

Solar financier Big60Million Ltd today announced that the first Certified Climate Bond in the UK, a “mini bond” of £4 million, was in the market. The bond closes 30 September; they expect to issue further tranches in the near future.

The bond’s proceeds will be used to refinance the cost of developing and constructing the 3.8MWp Willersey Solar Farm operating in Gloucestershire that was connected to grid in March this year.

“Big60Million Solar Bonds” were verified by Bureau Veritas as being compliant with the Climate Bonds Standard.  The Standard, which sets requirements for both environmental (assets’ contribution to a low-carbon economy) and financial (use of proceeds, traceability) credentials of the bond, allows investors to easily prioritise climate and green bonds, providing assurance that the funds are being used to deliver climate change solutions.

The bonds are priced at  £60 each, offering a fixed 7% return (gross) per year, for five years. Over £3.4 million in solar bonds have already been purchased and reserved.

The Big60Million Ltd climate bond is amini bond; an unlisted corporate bond for UK investors, companies and SIPP pension schemes.  It’s accredited to receive a Government subsidy of 1.6 Renewable Obligation Certificates (ROCs) for every MWh generated for the next 20-years and together with electricity, the project generates steady cash flows which are used to service the Bond repayments. Additional assurance provided include recourse to the assets and revenues of the fully accredited and operating Willersey Solar Farm which have been pledged to Bondholders as security. The security is held by Rockfire Security Trustee Limited.

As well as producing clean energy , the solar farm is being turned into a nature sanctuary. Big60Million works with partners such as Flowerscapes and the British Beekeepers Association to plant acres of wild flowers that support pollinating insects, and several animal habitats such as bee hives, bird boxes, bat boxes, and hedgehog boxes are already in-place. Big60Million are also collaborating with local schools and community groups to help with the wildlife enhancements and educational programmes.

Big60Million UK CEO Toddington Harper: We are delighted to be announcing the certification of Big60Million Solar Bonds today as the UK’s first official Climate Bond. We’ve already received significant interest in the bond from local residents and investors from across the country, with over 85% of the offer fully subscribed to date. […] The appeal of Big60Million Solar Farms goes far further than just money in peoples’ pockets which can be used to offset electricity costs. The projects also benefit the environment, as well as local communities through engagement with school groups, supporting local bee keepers and also using the site for organic community growing schemes.

Sean Kidney, CEO of the Climate Bonds Initiative:  Big60Million Solar Bonds are a 100% blue chip climate investment, directly contributing to the transition to a low carbon economy. A climate bond allows investors to earn money while helping to address climate change – doing well while doing good. Big60Million Solar Bonds met and exceeded all aspects of the Climate Bonds Standard, so we’re proud to provide Climate Bond certification, backed by investors and NGOs around the world. Certification helps investors to easily identify and prioritise their investments in recognition of the bond’s impact in helping deliver climate change solutions.

The Standard’s work is coordinated by the Climate Bond Standards Board – a group of institutional investors and leading environmental NGOs. Members of the Climate Bonds Standards Board are:

  • California State Teachers’ Retirement System (CalSTRS);
  • The Natural Resources Defense Council;
  • The State Treasurer of California;
  • The Investor Croup on Climate Change;
  • CDP (formerly the Carbon Disclosure Project),
  • Investor Network on Climate Risk
  • The Institutional Investors Group on Climate Change (IIGCC)