Good Energy has launched its second corporate bond offer with the aim of raising at least £10m to support the “next phase” of the renewable energy supplier’s growth.
Available to all UK residents over 18, the bond offer has an over-subscription maximum level of up to £20m.
Announced yesterday, Good Energy Bonds II will have an initial term of four years, offering a coupon of 4.75 per cent gross per year to be paid semi-annually, the firm said.
Applications close on 5 June and investments can be made in multiples of £250.
Good Energy launched its first corporate bond in 2013, since which time it claims to have more than doubled its revenue and profits. Last year the company delivered revenue growth of 41 per cent to £90.1m and EBITDA growth of 39 per cent to £10.1m.
The 2013 corporate bond launch was oversubscribed and raised £15m, with the proceeds largely used to support the development of solar farms.
Investors in the first corporate bond will also be able to roll over some or all of their investment into the second bond launched today, receiving their higher interest rate until 22 November, the firm said.
Juliet Davenport, Good Energy founder and CEO, said that in the four years since the previous bond offer the company had successfully adapted to the changing UK energy and regulatory environment, and now wanted to invest in remaining at the forefront of the evolving energy transition.
“New technologies and the way we use energy are bringing a modern, decentralised, low carbon structure to the UK energy industry,” explained Davenport. “We are excited about this evolution and the opportunities it creates, and we believe Good Energy is ideally placed to thrive in this new landscape.
“In addition to growing our core generation and supply business, we are focusing on developing sustainable energy solutions in areas such as energy storage, electric vehicle networks and green business consultancy to support consumer and business needs in this new environment.”
Founded 18 years ago, Good Energy supplies 100 per cent renewable electricity to 71,400 homes and businesses in the UK. And, since launching its ‘carbon neutral’ gas offering last year, the company now also provides green gas to more than 44,100 households.
Good Energy also raised £3.1m in an oversubscribed share offer last summer.
“Our strategy is clear – deliver sustainable, profitable growth by understanding and meeting our customers’ needs,” Davenport said. “We believe this aligns with not only the interests of our investors and customers but ultimately our purpose of supplying 100 per cent renewable and carbon neutral solutions to UK customers.”