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Southwark Green Investment 2

Help fund green and nature upgrades across the borough

Interest rate 4.0% a year
Term 5 years
Total Invested £500k
395  investors
Maturity date 31 Dec 2029
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About Southwark Council

Southwark is taking urgent action to make its environment clean, green and healthy. It has an ambitious plan for the whole borough to be carbon neutral by 2030. By taking action, it aims to reshape the borough into a better place for everyone. This will help deliver improvements in health, raise the standard of homes, create good green jobs and strengthen its communities.

The council has already cut its emissions since the launch of its climate action plan in 2021. This includes a number of climate projects, from an innovative heat pump programme for council housing estates, through to replacing over 8,000 light bulbs with LEDs.

How is the council using the money raised?

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

  • Expanding Library of Things to new parts of the borough, which will help reduce waste and save residents money
  • Key nature projects to protect and improve Southwark's green spaces for plants and wildlife
  • Green drainage projects like rain gardens that will tackle flooding
  • A major green upgrade to Camberwell Cemeteries and Crematorium

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 the 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.

Library of Things Canada Water opening event
Library of Things Canada Water opening event

Key terms

BorrowerSouthwark 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 rate4.0% 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 December 2029
Capital repaymentRegular instalments
Offer open date11 September 2024
Offer close date30 November 2024The Loan Opportunity may be withdrawn before the Offer Close Date at the Borrower's discretion subject to it posting notice of withdrawal on the Abundance website.
Minimum borrowing amount£5.00
Maximum borrowing amount£500,000.00
Initial interest periodThis will start on the date the lender makes their investment and ends on 31 December 2024.
Interest periodsFrom 1 January to 30 June and 1 July to 31 December each year, starting from 1 January 2025.
Return structure10 semi-annual payments of Interest & 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
30 June 2025 £91.32 £19.83 £111.15
31 December 2025 £93.15 £18.32 £111.47
30 June 2026 £95.01 £16.17 £111.18
31 December 2026 £96.91 £14.52 £111.43
30 June 2027 £98.85 £12.36 £111.21
31 December 2027 £100.83 £10.58 £111.41
30 June 2028 £102.84 £8.45 £111.29
31 December 2028 £104.90 £6.47 £111.37
30 June 2029 £107.00 £4.28 £111.28
31 December 2029 £109.19 £2.20 £111.39
Total £1,000.00 £113.18 £1,113.18