Triodos Bank has raised over £7m for five organisations through its recently-launched crowdfunding platform.
Launched three months ago, the platform enables people to invest directly in equity or bonds issued by established charities or businesses, which have been extensively screened by the bank for the viability of their business model and the credibility of the management team.
The most recent offer that was successfully completed was a £1.8m bond for Mendip Renewables.
The funds will be used to take a 5MW operational solar farm in Somerset into community ownership.
Investors who used the crowdfunding platform will earn 5% interest per year – increasing in line with the annual retail price index – repayable over 17 years.
The project is expected to contribute an estimated £1.4m of profit to a community benefit scheme.
“Since launching the crowdfunding platform, we have seen significant interest among investors looking to support pioneering, sustainable organisations and businesses,” said Dan Hird, head of corporate finance at Triodos Bank (pictured above).
“The range of projects that have already been or are near to being funded is evidence of the potential of crowdfunding to prompt positive social, environmental and cultural change.
“We are proud to be at the forefront of this movement and aim to support the funding of many more progressive projects on the Triodos crowdfunding site.”
Triodos Bank has a strong track record in raising finance for social and environmental organisations, having raised more than £140m to fund over 50 impact projects in the last 15 years.
Meg Blumsom invested in the Mendip Renewables bond
Meg Blumsom, a retired probation officer, who invested in the Mendip Renewables bond (pictured above), added: “I don't want to invest my money in things that do harm, which is why I chose to invest in Mendip Renewables through Triodos crowdfunding.
“I liked the fact that this bond helps to support the local community.
“We get regular updates and already feel like we're part of the project.”
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