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Good Energy launches second corporate bond

10 May 2017 07:00

RNS Number : 6727E
Good Energy Group PLC
10 May 2017
 

THIS ANNOUNCEMENT IS A FINANCIAL PROMOTION AND IS NOT INTENDED TO BE INVESTMENT ADVICE. THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, JAPAN, THE REPUBLIC OF IRELAND, THE REPUBLIC OF SOUTH AFRICA, AUSTRALIA OR TRANSMITTED, DISTRIBUTED TO, OR SENT BY, ANY NATIONAL OR RESIDENT OR CITIZEN OF ANY SUCH COUNTRIES OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION MAY CONTRAVENE LOCAL SECURITIES LAWS OR REGULATIONS (EACH A "RESTRICTED JURISDICTION"). ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF THE LAWS OF A RESTRICTED JURISDICTION.

This announcement is an advertisement and not an admission document or a prospectus and does not constitute or form part of an offer to sell or issue or a solicitation of an offer to subscribe for or buy any securities nor should it be relied upon in connection with any contract or commitment whatsoever. Investors should not purchase or subscribe for any securities referred to in this announcement except on the basis of the information in the bond offer document (the "Invitation Document") intended to be published by Good Energy Group PLC.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

Good Energy launches second bond to invest in growth

Good Energy Group PLC ("Good Energy" or the "Company"), the AIM-listed renewable energy supply and generation company, today announces the launch of its second corporate bond with a coupon of up to 5% ("Good Energy Bonds II" or "Bonds II").

Highlights:

· Good Energy Bonds II offer a coupon of 4.75% gross per annum, to be paid semi-annually

· In addition, any Good Energy customer investing in Good Energy Bonds II will be paid at maturity the equivalent to 0.25% for each year of being a customer and a bondholder

· Bonds II have an initial term of four years

· Investments in Bonds II can be made in multiples of £250

· Available to UK resident individuals aged 18 or over, companies, trusts, charities or other legal entities resident in the UK for corporation tax purposes, Bonds II are SIPP compliant

· Investors in Good Energy's first corporate bond will be able to roll over some or all of their investment into Bonds II, receiving their existing higher interest rate until 22 November 2017, the maturity date of the Good Energy Bonds I

Good Energy was founded 18 years ago with the aim of helping homes and businesses to be part of a sustainable solution to climate change. Good Energy supplies electricity throughout the British Isles from 100% renewable natural resources like wind, sunshine and rain. In 2016, the Company launched its carbon neutral gas offering, and now supplies renewable electricity to over 71,400 homes and businesses and carbon neutral gas to over 44,100 households.

Good Energy has more than doubled its revenues and profits since 2013, when it launched its first corporate bond, and last year delivered revenue growth of 41% to £90.1 million and EBITDA growth of 39% to £10.1 million. The first corporate bond raised £15 million in an oversubscribed offer, and the proceeds were primarily used to support the development of solar farms that supply electricity to tens of thousands of UK homes.

The Company is now seeking to raise £10 million via a second corporate bond, up to an over-subscription maximum of £20 million, as part of a diversified funding strategy that seeks to provide customers and investors with the opportunity to support a socially responsible renewable energy company in its growth ambitions to transform the way the UK sources, uses and interacts with energy. The proceeds will help to fund Good Energy's next phase of growth and ability to continue innovating for a cleaner, greener and more prosperous world for future generations.

Juliet Davenport, OBE, Founder and CEO of Good Energy commented:

"In the four years since we launched our first corporate bond, Good Energy has grown significantly and successfully adapted to the changing energy and regulatory environment of the UK.

New technologies and the way we use energy are bringing a modern, decentralised, low carbon structure to the UK energy industry. We are excited about this evolution and the opportunities it creates, and we believe Good Energy is ideally placed to thrive in this new landscape. In addition to growing our core generation and supply business, we are focusing on developing sustainable energy solutions in areas such as energy storage, electric vehicle networks and green business consultancy to support consumer and business needs in this new environment.

Good Energy has a long history of customer ownership and we are continuing this with the launch of Good Energy Bonds II, which will be used to develop renewable energy projects and broader corporate initiatives to fuel the future growth of the Company.

Our strategy is clear - deliver sustainable, profitable growth by understanding and meeting our customers' needs. We believe this aligns with not only the interests of our investors and customers but ultimately our purpose of supplying 100% renewable and carbon neutral solutions to UK customers."

Applications for the offer are due to close on 5 June 2017.

For more information on the Good Energy Bonds II, please see goodenergy.co.uk/new-bond.

Capitalised terms shall have the same meaning as in the Invitation Document unless the context requires otherwise.

For enquiries:

 

Good Energy Group PLC

+44 (0) 1249 766 795

Juliet Davenport, Chief Executive Officer

 

Denise Cockrem, Chief Financial Officer

 

 

 

Smithfield / Edelman (Media enquiries)

+44 (0) 20 3047 2476

Alex Simmons

 

Olivia Evans

 

Eleanor Best

 

 

 

Arden Partners plc

+44 (0) 121 423 8900

Steve Douglas

 

Patrick Caulfield

 

 

 

Investec Bank plc

+44 (0) 207 597 4000

Jeremy Ellis

 

Sara Hale

 

 

Notes to editors

· Good Energy is a fast growing green energy company, generating and selling 100% renewable electricity and green gas to households and businesses across the UK.

· An AIM-listed PLC, and founder member of the Social Stock Exchange, its purpose is to support change in the energy market, address climate change and boost energy security.

· The Company has been awarded 4 out of 5 stars by Which? for customer service in 2016 and 2017, and has been voted the best energy company for customer service by users of MoneySavingExpert.com for three consecutive polls.

· As at 31 December 2016, Good Energy had over 71,400 renewable electricity customers and 44,100 carbon neutral gas customers. It also provides Feed-in Tariff administration services to over 133,000 sites, totalling over 248,500.

· Good Energy is the owner of Delabole Wind Farm, the UK's first commercial onshore wind farm and owns and operates Hampole Wind Farm, near Doncaster. The Company also owns and operates seven solar farms.

· Good Energy received an average customer advocacy of 45. A net promoter score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company's products or services to others. It is used as a proxy for gauging the customer's overall satisfaction with a company's product or service and the customer's loyalty to the brand.

· Good Energy has won a number of awards, including Renewable Energy Association Company of the Year Award 2016, Business Green Company of the Year 2015, and was named Social Impact Company of the Year at the 2014 and 2015 Small Cap awards.

 Important Notice

This communication, which is a financial promotion for the purposes of Section 21 of the Financial Services and Markets Act 2000 (as amended) ("FSMA"), is issued by the Company which accepts responsibility for the information contained herein. This communication has been approved as a financial promotion for UK publication by Arden Partners plc of Arden House, 17 Highfield Road, Edgbaston, Birmingham, West Midlands, B15 3DU, which is authorised and regulated by the Financial Conduct Authority ("FCA") to conduct investment business. Arden Partners plc is registered on the FCA's Register with registered number 214032.

If you are in any doubt about the action you should take or the contents of this communication, you should contact an appropriate professional adviser authorised by the FCA under the Financial Services and Markets Act 2000 ("FSMA") to conduct investment business and who specialises in advising on investments in shares, bonds and other securities, including unlisted securities.

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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