By Josie Le Blond
CBD Energy Limited, Australian developer of renewable energy projects, has announced intentions to construct solar and/or wind generation assets in the UK. To facilitate the development of its proposed sites, the firm announced the launch of a new bond.
The first tranche of ‘EnergyBonds’ will pay quarterly interest in cash, at a fixed rate of 7.5% per annum, and are being issued by Energy Bonds plc, a wholly-owned UK subsidiary of CBD Energy Limited (‘CBD’).
The EnergyBonds will be allocated on a ‘first come, first served’ basis, with the minimum subscription set at £500, and multiples thereof, with no upper limit, said the company.
CBD is presently in the process of merging with Westinghouse Solar Inc, a US-based listed company, through a share scrip exchange - a deal which is expected to conclude in the coming months.
“We seek to raise up to £7.5mn with this first tranche of EnergyBonds, primarily to fund the development of utility-scale solar farms and wind farms within the UK, and to finance other overseas renewable energy projects within the Group,” said CBD Executive Chairman and Managing Director, Gerry McGowan. “We [...] have already identified several sites available for development,” he added.
Further reading: How to finance Solar Power?