An exciting new Ethex bond offer aims to raise £4.5m for the development of social enterprise Our Power into a profitable and progressive energy supply company, working to make energy fairer and reduce levels of fuel poverty. Our Power is also committed to providing employment in areas of deprivation, with a target of creating 200 jobs in areas of high unemployment and poverty.
The offer closes December 21st. The minimum investment amount is £500, with an expected return of 6.5% gross per annum. The required raise for the offer to proceed is £2m, but it will be backed by investment from Big Society Capital in the form of match funding. Under present HMRC rules first £300k of qualifying investment was also eligible for Social Investment Tax Relief (SITR), which may enable eligible investors to claim up to 30% tax relief on their investment.
Eastside Primetimers helped Our Power put together a bond offer document, containing detail of the business plan and expected social impact to help guide prospective investors.
Carron Garmory, Group FD at Our Power said:
“For investors, this is an opportunity to help a social enterprise tackle inequality and grow while securing a great return.
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 and achieve profitability by 2021. This is in addition to having five operating customer service hubs in regions of high unemployment providing 200 new jobs and being positioned as an influential player in the GB energy and social enterprise sector. Investment in our bond offer will help us to successfully achieve these business plan targets.
Working with Eastside Primetimers on the bond offer document was simple and straightforward. The expertise, knowledge and support from their consultant Paul Fredericks was integral to Our Power getting this bond to market on time”
It is estimated that a fuel-poor householder on Our Power’s standard variable tariff will be able to heat their home for an extra 82.5 days compared to a household on the standard variable tariff of one of the Big 6.