The new Triodos Bank crowdfunding platform is the first launched by a bank in the UK and will help people to invest directly in equity or bonds issued by organizations delivering positive social and environmental impacts.
The bonds are eligible to be held in the Innovative Finance ISA, allowing investors to receive the interest they earn on these investments tax-free.
People can invest as little as £500 ($700) – some offers will have lower investment minimums – in established charities or businesses that have been extensively screened by Triodos for social and environmental impact, the viability of their business model and the credibility of the management team.
“Everyday investors can make a positive choice to shape the world they want to live in,” said Bevis Watts, Managing Director of Triodos Bank UK. “In that sense money can be a hugely powerful form of democracy if invested directly into renewable energy, social housing, charities or social enterprises. With the new Triodos Crowdfunding platform we’re recognizing the huge potential of crowdfunding and responding to demand for Innovative Finance ISAs."
The platform launches with three bond offers, with interest rates ranging from 5 percent to 7 percent.
Mendip Renewables aims to take a 5 MW operational solar farm in Somerset into community ownership. Investors can earn 5 percent interest per year, increasing in line with the annual retail price index, repayable over 17 years.
Thera Trust, a charitable group of companies providing care and housing for people with complex learning disabilities, aims to provide 14 new homes. Investors will earn 5.5 percent interest per year over a 6-year term.
Rendesco is raising money to develop green energy from ground source heat pumps and is paying 7 percent interest per year over a 7-year term. They are aiming to develop 100 sites with a focus on retirement homes and providing low-carbon heating.