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Big60Million Launches £20.4 Million Solar Mini-bond Portfolio

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Big60Million has announced the launch of a £20.4 million Solar Bond portfolio "“ the UK's biggest renewables mini-bond offer "“ giving investors an opportunity to earn 6 percent (gross) interest each year by investing in clean solar energy.

The secured, five-year fixed-term Big60Million Solar Bonds are priced at £60 each to give the maximum number of people the chance to take a stake in three newly built solar farms, which will produce a combined 34MW of clean electricity "“ enough to power over 10,000 homes and avoid 14,600 tonnes of CO2 a year from conventional fossil-fuel generation.

Big60Million is a new type of community benefit energy company, and its nationwide "Power to the People" campaign aims to give all 60 million people in the UK an opportunity to take part in and benefit from the clean energy revolution. Each Solar Bond has been designed to offer important financial, environmental and social benefits to local communities.

Big60Million is launching the three Solar Bonds as a portfolio, the UK's biggest solar bond launch to date seeking to raise a total £20.4 million by 1pm May 27th 2015. They are:

"¢ An £8.6 million Solar Bond offer for Atherstone Solar Farm Ltd "“ a 14.8MW project on 32 hectares near Atherstone, Warwickshire. It will generate enough electricity to power 4,180 homes and avoid 6,100 tonnes of CO2 every year.

"¢ A £5.8 million Solar Bond offer for Southam Solar Farm Ltd "“ a 10.3MW project on 26 hectares near Royal Leamington Spa, Warwickshire. It will generate enough electricity to power 3,010 homes and avoid 4,400 tonnes of CO2 every year.

"¢ A £6 million Solar Bond offer for Paddock Wood Solar Farm Ltd "“ a 9.2 MW project on 25 hectares near Tunbridge Wells, Kent. It will generate enough electricity to power 2,820 homes and avoid 4,100 tonnes of CO2 every year.

The three solar farms connected to the National Grid in March 2015 and are fully constructed and operational. Their assets and revenues have been pledged to investors as security, giving them further assurance. This innovative portfolio approach also allows people to spread their investments by buying a stake in one, two or all three solar farms.

Big60Million's first Solar Bond offer, in August 2014 raised £4 million and was almost 20 percent oversubscribed at financial close, demonstrating a clear demand for investments in quality asset-backed renewable energy projects offering strong financial returns with environmental and community benefits.

Investors will accrue interest at the rate of 6 percent (gross) from receipt from the registrar of a valid application and cleared funds. The investment will earn a daily rate from the time in which an investor invests until the closing date of the bonds. The daily interest earned during the offer period of the bond will be paid to investors along with their first full year interest payment on the first anniversary of the bond closing date. Thereafter investors will receive their interest twice yearly. At maturity of the bond investors can choose to either have their original investment repaid or to reinvest for a further 20 years.  Individuals, companies, charities and trusts and all eligible to buy as many bonds as they wish. In addition these bonds can be held in SIPPS (Self Invested Personal Pensions) Subject to individual SIPP trustee arrangements.

A person investing £9,960 in 166 Solar Bonds would earn enough interest before tax each year to offset the average £592 home electricity bill and its carbon emissions.

Big60Million will reserve 10% of the bonds for six weeks for people living within 10 miles of each solar farm to ensure that each project returns substantial profits to its community. The portion reserved for Atherstone would see more than £250,000 in interest flow into the community over the lifetime of the bond if local investors take it up in full.

Raised solar panels on each farm will leave 95% of the land free to be transformed into a nature sanctuary rich in biodiversity. Plans to plant wildflower meadows and create habitat for birds, bats, bees and endangered animals like hedgehogs have been drawn up with the help of Avian Ecology, the British Beekeepers Association and habitat creation experts FlowerScapes.

The solar farms also aim to forge strong community links, working with schools and colleges to help pupils learn about renewable energy and climate change, as well as local wildlife and its habitat.

Toddington Harper, CEO of Big60Million, said: "We want to put power in the hands of the people and help them make money and build a better world for their families by investing in the future. These investments allow people to share in the profits of our solar farms and will help combat climate change, build our energy security and protect the environment for future generations."

The solar farms and bond offers have received strong support in each community. Councillor Ray Sweet, Mayor of North Warwickshire, said of Atherstone: "This solar farm is a triple win for the town. It offers local people an attractive return when bank interest rates are low, it will generate enough clean energy to power over 4000 homes, and it will create a nature sanctuary as a resource for our community."

Farmer Michael Mann, on whose land most of Southam solar farm will be constructed, said: "I love the scheme because I am passionate about wildlife and protecting the land and the farm.  I think the fact that it is a local solar farm, with opportunities for local people to invest and make a good financial return, is great news for the local community. They will feel part of it and part owners of the farm."

The Willersey Solar Farm Solar Bond was the UK's first certified Climate Bond, assuring investors that their money will finance climate change solutions. Big60Million has applied for Climate Bond certification for all three new solar farms.

The three solar farms have been built by leading solar power developer BELECTRIC UK, which will run and maintain them. They are on sensitively located sites which are already well shielded from their surroundings by hedges and trees and additional planting will reduce their visual impact still further. All three received planning permission with good local support.

The solar farms will generate steady cash flows to service bond repayments. They will receive a 20-year inflation-linked government subsidy of 1.4 Renewable Obligation Certificates (ROCs) paid for each MWh of electricity generated, and they will also make money from the sale of electricity generated by the solar farm into the National Grid network.

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