Triodos Bank has launched its own crowdfunding platform, which will allow people to invest directly in equity or bonds issued by organisations delivering positive social and environmental impacts.
The sustainable bank’s platform offers a range of crowdfunding opportunities to investors and bonds will be eligible for the Innovative Finance Isa.
People will be able to invest as little as £500 in established charities or businesses that have been screened by Triodos for social and environmental impact, the viability of their business model and the creditability of the management team.
Triodos’s platform is launching with three bond offers and interest rates ranging from 5-7%.
These bonds include:
- Mendip Renewables, which aims to raise £1.8m by 31st March to take a 5MW operational solar farm in Somerset into community ownership
- Thera Trust, which is looking to raise £5m to provide 14 new homes for people with learning disabilities
- Rendesco, which hopes to raise £5.5m to develop green energy from ground source heat pumps.
Bevis Watts, managing director at Triodos Bank UK (pictured top), said social investment needed to be more accessible to UK investors.
“We’ve been crowdfunding since before it became a well-known term.
“With the new Triodos crowdfunding platform, we’re recognising the huge potential of crowdfunding and responding to demand for Innovative Finance Isas.
“Investors are looking for opportunities that allow them to support progressive companies, social enterprises and charities making a positive impact, while also receiving good, long-term returns.”
Triodos has raised more than £130m to fund over 50 impact projects in the last 15 years, including a charity bond for Golden Lane Housing.
The crowdfunding platform follows the launch of the Triodos personal current account introduced last year.
“To tackle the big issues we face today, we need to inspire investors to support progressive and pioneering businesses,” said Dan Hird, head of corporate finance at Triodos Bank.
“We know the interest is there and – having seen the crowdfunding sector maturing in recent years – now feels like the perfect time to increase our presence in the ethical crowdfunding market.
“It aligns with our mission at Triodos Bank to make money work for positive social, environmental and cultural change.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
U Account introduces cash pay-in option
U Account has launched a cash pay-in option for its 50,000 current account customers.
Aldermore provides £6.27m loan for south London development
Acre Invest has agreed a £6.27m funding package with Aldermore to build a large commercial unit and 18 apartments in Sydenham, south London.
Metro Bank to launch AI-powered money management service
Metro Bank has announced the upcoming release of Insights, a new artificial intelligence-powered money management service.
Over 500,000 complaints made about current accounts
The FCA has revealed that 509,047 complaints were made to financial services firms about current accounts during the second half of 2017.
A guide to ethical banking
Some 56% of workers with a pension are interested in investing in community projects, according to recent research.
Countingup partners with PrePay Solutions
PrePay Solutions (PPS) has joined forces with challenger bank Countingup to provide business accounting and banking together in one place.
TSB and Enterprise Nation offer SMEs digital MOT test
TSB’s small business customers have the opportunity to undertake a newly created digital MOT test as they join the Enterprise Nation community.
Revolut introduces spare change savings feature
Revolut has become the latest mobile banking platform to add a spare change savings feature to its current account.
GDPR compliance highlighted at first FIBA roadshow
The Financial Intermediary & Broker Association (FIBA) held its first regional roadshow last Thursday (12th April) in north London.
Moneyhub integrates with Monzo and Starling
Moneyhub has integrated with Monzo and Starling’s APIs to provide customers of the digital banks with a comprehensive overview of all their financial assets.