A Canadian company involved in renewable energy project financing has issued a green bond offering that allows individuals to participate in impact investing by helping fund renewable energy projects.
RE Royalties, a listed company (TSX.V: RE) specialising in renewable energy financing, is offering Green Bonds to prospective investors who want to “climate-proof” their portfolio through sustainable investing.
More information is available at https://www.reroyalties.com/green-bonds
Individuals will be given the opportunity to invest in the growing clean energy sector, while earning a fixed 6% interest annually, which will be paid quarterly.
The company completed the third tranche of its offering in December 2020. It will continue to market the fourth tranche of the offer up until February 25, 2021.
The minimum investment required is $5,000. This minimum amount can generate $300 annually or $75 quarterly until the bond reaches its maturity in five years. Investments can be increased by purchasing more bonds in increments of $1,000.
Green Bonds can be held in various savings accounts like TFSA, RRSP, and LIRA, among others.
Those who want to participate in the offering may invest through specified financial advisors and brokerages. RE Royalties provides a registration form on its website.
Funds raised through this issuance will be used to finance various investments made in renewable energy.
The company is currently generating royalties from 86 projects in solar, wind, and hydroelectric power. It stated that these projects have a generation capacity of 472 megawatts, which is enough to power over 117,000 homes.
A breakdown of the company’s royalty portfolio can be found at https://www.reroyalties.com/portfolio
Unlike similar bond options, RE Royalties Green Bonds are senior-secured, which means that they are backed by the company’s diversified portfolio of renewable energy investments.
According to the firm, it has a first-mover advantage as it is the first company to apply the royalty financing model to the renewable energy sector.
Canada is striving to have 90% of its electricity to be generated by non-emitting sources by 2030. According to RE Royalties, this demand presents an immense growth opportunity for the country’s renewable energy industry.
For individuals, the expansion of the renewable energy market makes this offer a smart and potentially lucrative investment.
Full details about the company and its offer can be found at https://www.reroyalties.com/about-us or at the URL above.