Hazel Power Bond – 8% p.a. fixed interest, two and a half year term
This asset and contract-backed Power Bond offer could provide a higher-risk but higher-reward alternative to holding cash.
It is offered by Hazel Capital, an experienced investment manager and developer specialising in clean energy technologies. It has to date developed and constructed 290MW of renewable energy projects and advises on +£200 million of renewable assets.
It's already raised 87% of its target - but we've managed to secure a last-minute allocation of £350,000 exclusively for our clients. If you're interested, time is of the essence.
Why consider investing?
- 8% fixed-interest – paid every six months
- Capital repayment at the end of the term, after two and a half years
- Co-invest with Hazel Capital in a series of containerised batteries and engines that help the National Grid with the peaks and troughs of energy demand and supply
- Low loan to value – estimated 30% of project end value
- Good downside protection: even in worst case scenario, the management believes they’ll have sufficient cash to cover interest and capital. In the unlikely event of a shortfall in cash flow, Hazel Capital will lend up to £1 million to help sustain interest payments
- Senior protection over any other lenders and shareholders
- Pre-agreed contracts with the National Grid covering 70% of the revenue
- Revenue is uncorrelated to energy prices
- Asset-backed: raising £6.5 million to fund purchase of equipment
- Minimum investment £25,000 – invest as an individual or as a company
What to watch out for?
The Power Bond is not transferable and cannot be traded in on any secondary market. It is not immediately realisable and illiquid, so it involves a degree of risk. Moreover it is not covered by the Financial Services Compensation Scheme.
Neither the interest nor your capital are guaranteed, so you could get back less than you invest. Financial projections indicate there will be sufficient funds to service interest costs and repay debt at the end of the term, but you should form your own view.
Interest is paid net of 20% UK Withholding Tax. Please remember tax benefits depend on circumstances and tax rules can change.
How to invest
Before investing you should download and read carefully the Power Bond Offering Memorandum.
You can reserve an allocation online. There is no obligation to proceed. The reservation will simply buy you some time whilst you decide, without the risk of missing out.
If you're ready to invest, please download, complete and return the application form.
The products we offer are not suitable for everyone. They are normally high risk, illiquid and should be held for the long term. If you're unsure an investment is right for you, please seek professional advice.
This review is not intended to be advice or a personal recommendation to buy the investment mentioned, nor is it a research recommendation. Wealth Club aims to highlight investments we believe have merit, but investors should form their own view on any proposed investment.
- Secured bond
- Target raise
- £6.5 million
- Interest rate
- 8% p.a.
- 2 and a half years
- Loan to value
- 30% of project end value (est.)