A limited opportunity to participate in a UK renewable energy infrastructure project, receiving a minimum income of 7.73% per annum with valuable, planning-consented, land as security.
Driven by long-term global environmental and energy requirements, the UK waste sector is transforming; from a logistics industry that took c.100 million tonnes of waste to landfill each year, to become a process industry reclaiming resources – particularly energy. EU and UK legislation is forcing this change. The UK, short on bank funding, is not delivering the required capacity. The Enviroparks Corporate Bonds represent an opportunity to invest in the infrastructure required, first to produce a Refuse Derived Fuel for export to Europe, and then energy from waste in the UK. The project has recently received conditional offers for up to £3.5m Welsh Government funding toward building costs and from Finance Wales for £1.1m equity.
The Benefits
- The minimum subscription amount is £10,000.
- Enviroparks Corporate Bonds will be issued for a term of seven years.
- Investors have an exit option at year five with no penalty. The Company may make early repayment after year two, subject to making a repayment bonus to Investors of six months’ interest.
- Enviroparks Corporate Bonds pay 7.73% interest p.a. for the first five years rising to 9.73% p.a. for the final two years. Interest is paid quarterly in arrears to Investors.
- An Investor, who holds the Enviroparks Corporate Bonds until maturity having chosen the roll-up option, will receive a cumulative return of 77.7%.
- The Bonds will be secured against the freehold Hirwaun site, independently valued at £7m as a brown-field site.
- Co-investment with Greyfriars Asset Management agreed in principle for a parallel investment of up to £2.5m with Enviroparks Corporate Bond Investors. Combined borrowings will have a maximum of £5.5m giving asset cover of 127%
- Illustrative financial projections indicate a debt service coverage ratio of >1.5x, which is adequate cash flow to pay all amounts owed to the Bondholders.
| 5 year exit Taking Interest | 5 year exit with Roll up | 7 year exit Taking Interest | 7 year exit with Roll Up | |
| £10,000 invested receives total income | £3,865 | £4,664 | £5,811 | £7,773 |
| Expressed as a % of sum invested | 38.6% | 46.7% | 58.1% | 77.7% |
Investors have an option to redeem after 5 years. Those selecting to invest for the full seven year term will receive 9.73% interest per annum for the final two years.
Security and Co-investment: The Enviroparks Bonds will be secured against the site at Hirwaun, independently valued by Savills for lending purposes at £7m. Greyfriars Asset Management has agreed in principle to invest £2.5m in a parallel issue with the Enviroparks Bonds. Together a total of £5.5m may be raised giving security cover of 1.27 times.
This page does not constitute an offer to invest but is for information only. Persons expressing an interest in the bond will receive an invitation document, which they should read and ensure they fully understand prior to making any decision to subscribe. Persons in any doubt regarding the risks associated with investments of this nature should consult a suitable qualified and authorised advisor
For more information or to request a brochure, please contact us