July 20 (Bloomberg) -- Abundance NRG Ltd., a London investment company, is courting retail investors with an offer to buy into wind, solar and other renewable energy projects for as little as 5 pounds ($7.90).
Abundance sells bonds issued by developers of wind farms and solar parks to those wishing to invest directly, co-founder Bruce Davies said in an interview. The bonds will deliver cash returns of 6.75 to 8 percent a year to investors who spend as much as 50,000 pounds per venture, Davies said by phone.
“There’s a massive gap in the funding of renewable energy,” Davies said from London of plans to court an alternative brand of investor. “Small-scale projects find it hard to raise bank finance because from a bank’s point of view, for a small project it’s hard to charge a larger fee.”
Abundance said it plans to get 1.4 million pounds this year for its first 500-kilowatt wind project in the Forest of Dean. It also is aiming to attract 250 million pounds of investments in five years, provided it grows in the period.
To contact the reporter responsible for this story: Sally Bakewell in London at Sbakewell1@bloomberg.net
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org