Good Energy Seeks $8 Million in Bond Sale for Wind, Solar

October 2, 2013 by  
Filed under Green Energy News

Good Energy Group Plc (GOOD) is seeking to
raise at least 5 million pounds ($8.1 million) in a corporate
bond sale to help the U.K. renewable power supplier expand its
electricity generating capacity more than tenfold.

The bonds will be sold in 500-pound tranches offering an
annual coupon of 7.25 percent, with payments made every six
months, Chippenham, southern England-based Good Energy said
today in a statement. Customers of the utility who buy the four-year bonds will get an extra payment on maturity worth 0.25
percent for each year they are clients and bondholders.

The bond sale, which Good Energy described as the first by
a listed company to also reward utility customers, is designed
to help fund its expansion plans.

It’s seeking to develop enough renewable generating
capacity to supply 50 percent of its customers’ electricity by
2016. It currently operates a single 9.2-megawatt wind farm,
which provides 16 percent of supply.

“The launch of the Good Energy bonds is intended to raise
finance for the group to invest in increasing its own solar and
wind generation capacity,” the company said. “The proceeds
will contribute to the group’s overall objective of developing
110 megawatts of its own renewable energy generation capacity by
2016.”

Good Energy, which has a market value of about 27 million
pounds, said the bond issue could be as great as 15 million
pounds, depending on demand. Applications to buy the bond close
on Nov. 13.

The company has a pipeline of more than 200 megawatts of
solar farms and wind projects in development, and yesterday said
it received planning consent for a 30-megawatt solar farm in
Pembrokeshire, South Wales.

To contact the reporter on this story:
Alex Morales in London at
amorales2@bloomberg.net

To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net

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