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Hackney Green Investment 1

Invest in Hackney Council's climate programme and help fund solar panels on schools and council homes.

Interest rate 4.5% a year
Term 5 years
Total Invested £600k
467  investors
Maturity date 31 Aug 2029
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About Hackney Council

Hackney Council has one of the most ambitious climate action programmes in the country. In recent years it has switched all buildings to 100% renewable electricity, installed zero carbon energy measures on buildings including the Hackney Empire, planted thousands of trees and made half of its streets better for walking and cycling by pioneering programmes such as School Streets.

How is the council using the money raised?

The money invested will help fund a range of projects from its climate action programme. These measures are expected to include:

  • Solar panels and energy efficiency measures across Council homes and local schools, to help cut bills and support them to reduce emissions.
  • EV charging points across Hackney, as part of the Council’s sector-leading rollout of charging infrastructure

This investment is Green Loan Principles compliant

This investment has been issued under a Green Finance Framework. This is a voluntary standard which sets out how Hackney 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.

Hackney Council is investing in climate action across their community
Hackney Council is investing in climate action across their community

Key terms

BorrowerHackney London Borough Council
Use of funds

Funding Eligible Green Projects under the Council's Green Finance Framework, with an expected focus on Green Energy, Clean Transportation.

Interest rate4.50% 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 date31 August 2029
Capital repaymentRegular instalments
Offer open date28 May 2024
Offer close date15 August 2024
Minimum borrowing amount£5.00
Maximum borrowing amount£600,000.00
Initial interest periodThis will start on the date the lender makes their investment and ends on 31 August 2024.
Interest periodsFrom 1 September to 28 February and 1 March to 31 August each year, starting from 1 September 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 fee0.20% 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
28 February 2025 £90.28 £22.31 £112.59
1 September 2025 £92.31 £20.63 £112.94
2 March 2026 £94.39 £18.24 £112.63
31 August 2026 £96.52 £16.40 £112.92
1 March 2027 £98.69 £13.97 £112.66
31 August 2027 £100.91 £11.97 £112.88
29 February 2028 £103.18 £9.57 £112.75
31 August 2028 £105.50 £7.34 £112.84
28 February 2029 £107.87 £4.86 £112.73
31 August 2029 £110.35 £2.50 £112.85
Total £1,000.00 £127.79 £1,127.79