Secured Energy Bonds, a wholly-owned subsidiary of CBD Energy Limited, has confirmed that its solar mini-bond successfully achieved a full raise at launch.
The company claims that the solar mini-bond is the first of its kind for the UK energy sector. Launched on 5 October, the bond closed on 9 December oversubscribed at £7.536 million.
The capital raised by the solar mini-bond will be used to fund the design, development, installation and management of a portfolio of around 40 commercial rooftop solar arrays located across the UK.
Commenting on the bond’s performance, CBD executive chairman, Gerry McGowan said: “Growing numbers of people are coming to recognise the need to develop new, cleaner energy sources. The proceeds from this Bond are being used to develop a portfolio of solar installations on commercial property. Once this portfolio reaches an optimum scale, it will be refinanced, with CBD retaining part or full ownership.
“This is in keeping with our business model, which is to maintain a significant stake in our commercial and utility-scale developments. This will enable CBD and its investors to share in the ongoing, reliable revenues and profits generated from the operating asset.
McGowan added: “We have a strong pipeline of projects in place, but the success of this raise means we now have the development funds in place to be opportunistic, and to move swiftly to secure other interesting development projects which may become available. CBD will generate EPC margin, operating margin and value uplift from these developments.”