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H&F Green Investment Phase 2

Helping fund green measures for council-owned buildings like schools and community centres.

Interest rate 4.6% a year
Term 5 years
Total Invested £755k
503  investors
Maturity date 30 Jun 2029
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About Hammersmith & Fulham Council

Hammersmith & Fulham Council wants to help create a green, clean and sustainable future. Its top-rated climate and ecological strategy and action plan - developed in collaboration with residents - guides their ambitious journey to making H&F carbon net zero. A key focus of its plans is improving energy efficiency and movng away from fossil fuels across council-owned buildings, a sector which currently accounts for 80% of the council’s carbon emissions, as outlined in H&F’s new cross-borough energy masterplan.

How is the council using the money raised?

The money invested will help fund a range of green measures at council-owned buildings. These measures are expected to include:

  • new solar panels and battery storage
  • LED lighting
  • air source heat pumps to tap into community-wide heat networks.

This investment is Green Loan Principles compliant

This investment has been issued under a Green Finance Framework (PDF). This is a voluntary standard which sets out how Hammersmith & Fulham Council intends to manage its green local authority securities in the future, and outlines how they will meet the Green Loan Principles. This assures investors that funds raised can only be used to help them deliver on eligible green projects from within this framework, and Abundance will monitor the use of funds across the investment term to ensure the principles are being adhered to.

The leader of H&F Council, Cllr Stephen Cowan, is shown standing with a group of local schoolchildren at H&F's new Civic Campus in King Street, Hammersmith
Leader of H&F Council, Cllr Stephen Cowan (pictured centre), with local schoolchildren at H&F's new Civic Campus in King Street, Hammersmith

Key terms

BorrowerHammersmith & Fulham Council
Use of funds

Funding Eligible Green Projects under the Council’s Green Finance Framework, with an expected focus on Green Energy and Energy Efficiency.

Interest rate4.60% a yearThis is the interest rate paid by the Local Authority to lenders and does not include the cost of fees paid to Abundance in its role as Arranger and Agent.
Term period5 years after end of 'Initial interest period'
Maturity date30 June 2029
Capital repaymentRegular instalments
Offer open date26 February 2024
Offer close date27 May 2024
Minimum borrowing amount£5.00
Maximum borrowing amount£1,000,000.00
Initial interest periodThis will start on the date the lender makes their investment and ends on 30 June 2024.
Interest periodsFrom 1 July to 31 December and 1 January to 30 June each year, starting from 1 July 2024.
Return structure10 semi-annual returns of Interest and Capital on the last day of each Interest Period with the last one, on the Maturity Date.
Arrangement fee0.75% of total amount raisedThis is the fee paid to Abundance in its role as Arranger. The interest rate above is quoted after fees.
Management fee0.15% of total amount raised per yearThis is the fee paid to Abundance in its role as Agent. The interest rate above is quoted after fees.
Early repayment optionsThe local authority can repay early on any payment date. An early repayment fee equal to 12 months’ Interest will apply.

Documents

Loan Conditions
Download PDF Together with the key terms, the loan conditions form the legal agreement that define the terms of the investment.
Green Finance Framework
Download PDF This document provides the overarching criteria and guidelines for how the council will raise funding for eligible green projects and ensure ongoing compliance with the Green Loan Principles.

Payment schedule

This table gives a breakdown of what is due to be paid back on this investment, based on an example investment of £1,000.

Payment schedule table
Payment date Capital repayment Interest Total
31 December 2024 £90.08 £23.18 £113.26
30 June 2025 £92.15 £20.75 £112.90
31 December 2025 £94.27 £18.96 £113.23
30 June 2026 £96.44 £16.50 £112.94
31 December 2026 £98.66 £14.54 £113.20
30 June 2027 £100.93 £12.05 £112.98
31 December 2027 £103.25 £9.91 £113.16
30 June 2028 £105.62 £7.43 £113.05
2 January 2024 £108.05 £5.06 £113.11
1 July 2024 £110.55 £2.52 £113.07
Total £1,000.00 £130.90 £1,130.90