The Power Bond offer is now closed – Power Bond 2 offer to follow soon.
What we do
The Power Bond Offer
Hazel Capital is delighted to confirm the launch of the “Power Bond” Offer.
We are issuing £6.5m in secured loan notes (“Power Bonds”) to fund a 20MW battery infrastructure project near Newcastle-Under-Lyme.
Power Bonds offer a fixed return of 8% per annum over 2½ years through senior-ranking debt secured on the Project’s assets and revenue.
The Project comprises a series of containerised batteries and engines, known as Energy Storage Systems (“ESS”), which are connected to the National Grid to provide rapid energy supply balancing services through pre-agreed contracts already in place with NG. The Project’s revenue is not correlated to energy prices and there is no reliance on government subsidy.
Interest rate: fixed 8.0% per annum
Instrument: secured bond
Term: 2 years 6 months
Security: debenture with first charge over the Project assets
Loan to Value: 30%
Interest paid: 6-monthly (5 instalments)
Principal: repaid after 2 years 6 months
Offer closes: 30 November 2016 (or before if fully subscribed)
Minimum investment: £25,000
Target raise: £6.5m
Offer costs: 1.0%
Arrangement fee: 1.5%, including up to 0.5% adviser commission
Our future intent
Hazel Capital predict three key technologies will have a huge global impact on how trillions of dollars of GDP are spent on energy and transportation. These three areas form the nexus of change for the energy industry and are the core focus for Hazel Capital.
Already the cheapest form of renewable energy in some parts of the world and becoming cheaper every year. Hazel Capital’s own research suggest solar power could provide around 40% share of electricity in 2050.
In Hazel Capital’s opinion, derived from its research, electric cars are proving that they can take over from internal combustion engines – through better quality and range, as well as combined with lower running costs and emissions. Hazel Capital expects electric cars to represent a large part of the car market share by 2022.
In Hazel Capital’s opinion, more reliable and lower cost batteries are becoming the key driver for rising renewable energy and EV market penetration. On the grid, batteries smooth out the intermittent generation.
Hazel Renewable Energy VCT 1 and VCT 2 PLC
Hazel Capital launched Hazel Renewable Energy VCT 1 Plc and Hazel Renewable Energy VCT 2 Plc in 2010. £41.6m was raised between 2010 and 2011 representing the most successful ever launch by a new entrant to the VCT market. The Hazel VCTs have since launched two Top-Up Offers (2012 and 2014). Both were fully subscribed to a target fund raise together of £8.2m.
The Hazel VCTs are the best performing VCTs launched since 2008 in terms of Total Return. They have successfully invested in 19 projects, and currently own and manage 6 FiT and 2 ROC ground-mounted solar projects. An investor in the VCTs’ original share offer has enjoyed a Total Return (NAV plus dividends to date) of 147.2p for every 100p invested.
The Hazel VCTs invest in lower risk and profitable UK turn-key and operational renewable energy projects that benefit from long-term government-guaranteed revenues. They aim to provide a more secure investment than is normally anticipated within a VCT structure while utilising the associated tax benefits to enhance returns.
Downing LLP provides administration services to the VCT Funds across all share classes and details can be found following the links below:
Hazel VCT 1 PLC
List of Directors
Michael Cunningham (Chairman)
TIDM Code: HR1O
ISIN number: GB00B4M2G812
SEDOL number: B4M2G81
TIDM Code: HR1A
ISIN number: GB00B4L13999
SEDOL number: B4L1399
Hazel VCT 2 PLC
List of Directors
Peter Wisher (Chairman)
TIDM Code: HR2O
ISIN number: GB00B43GVJ82
SEDOL number: B43GVJ8
TIDM Code: HR2A
ISIN number: GB00B4KWC525
SEDOL number: B4KWC52