Linton Hydro Limited owns and operates two adjacent hydro power schemes at the Linton Lock on the River Ouse in North Yorkshire.
In 2016 the Company was established specifically for the purpose of developing and upgrading the existing 100 kW hydro scheme at the Lock. The project, which included the construction of an additional 280 kW turbine, was funded by a £2.5m ten-year bond issue promoted by Triodos Bank, together with shareholder and directors’ loans.
The two schemes generate enough electricity to power the equivalent of approximately 450 homes1 and supply electricity directly to a local free-range chicken farm.
The hydro schemes benefit from a 40 year lease expiring 2054 and index-linked payments to be made until 2032 (100 kW turbine) and 2037 (280 kW turbine) under the government’s Feed-in Tariff programme.
Linton Hydro seeks to raise up to £3.3 million to repay the outstanding 2016 bond and some of the shareholder loans that were used to finance the construction and improvement of the schemes.
Before deciding to invest, please ensure that you read the Linton Hydro 2019 bond offer document. The offer document can be downloaded at the bottom of this page.
Linton Hydro bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). The IFISA is a type of ISA that allows you to hold crowdfunded debt securities such as this bond. As with all ISAs, there are eligibility criteria and you receive interest tax-free.
To invest in the Linton Hydro bonds through a Triodos IFISA, select the ‘Invest through IFISA’ option. This selection will open a current year IFISA.
If you want to invest by transferring an existing ISA to a Triodos IFISA you must first request the transfer. You can do this under ‘Account’ once you’ve become a registered user of the platform.
Linton Hydro Limited
13 years, final repayment is due on 31 January 2033 but is not guaranteed.
The bonds are expected to be repaid in twelve equal annual instalments with the first instalment payable in January 2022 and the final instalment payable in January 2033.
5.25% gross per year, increasing in line with the annual retail price index each year from April 2020. Payable in arrears on 31 January each year (net of UK basic rate tax unless held in a Triodos Innovative Finance ISA when interest will be paid gross). Investors should note that the payment of interest and repayment of capital are not guaranteed and are dependent on the continued success of Linton Hydro’s business model. Interest will accrue from the date the bonds are issued.
The bonds are secured by way of a first ranking legal charge over all the assets of Linton Hydro and its subsidiaries, but this asset security does not mean that capital or interest payments are guaranteed in any way.
The directors can, at their sole discretion, repay the bonds in part or in full from 31 January 2025.
Bonds are transferable but are not listed on any investment exchange which means that bondholders will have to find a willing buyer and agree a purchase price with them. Investors should be prepared to hold the bonds for their full 13-year term.
A negative pledge regarding other borrowings until the bonds are repaid in full. This prevents the company from taking on any secured or other interest-bearing debt in that time. Whilst the bonds remain outstanding, repayment of other outstanding loans as well as dividends to any founding shareholders are not permitted.
£2,500,000. If less than £2,500,000 is raised, monies will be returned to investors with no accrued interest. An initial close will occur upon reaching the minimum raise allowing for the 14-day cooling off period.
The offer closes at noon on 16 December 2019 unless the £3,300,000 target has been reached earlier or the offer is extended by the directors at their sole discretion.
Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed.
You can download the offer document without registering or logging in. If you click ‘Next step’ you will need to register.
5.25% per year (inflation linked)