thumbnail of Upper Pitforthie Windgen Debenture 2

Upper Pitforthie Windgen Debenture 2

Return 7.3%-8.5% IRR (variable)
Term 17 years
Total Invested £2.3m
565  investors
Maturity date 31 Mar 2034
thumbnail of Upper Pitforthie Windgen Debenture 2

What does the company do?

Upper Pitforthie Windgen was set up to own, build and manage a 500kW Enercon E48 wind turbine at the Upper Pitforthie farm in Aberdeenshire. The wind turbine generates clean renewable electricity which it supplies to the grid and a wood chip and grain drying business on the same farm. The drying business supplies woodchip to local biomass boiler owners, bringing the green energy element full circle; it is one form of renewable energy supporting another.

The main local user of the electricity generated, North Eastern Fuels (NEF), is a wood chipping and drying business also set up on Upper Pitforthie Farm as a joint venture between John Alexander, the farmer, and John Fotheringham, one of Upper Pitforthie’s directors. NEF has a 999 kW biomass system and a 450 kW electric immersion heater, both of which can be used to provide heat to dry wood chip.

The wind turbine is accredited for the Feed-in Tariff scheme, which pays a fixed amount (rising annually with inflation) for each unit of electricity generated, plus an additional amount for the electricity exported to the grid. The company can choose to opt out of the export Feed-in tariff and instead agree a contract with an energy supplier when wholesale electricity prices are higher.

Why did the company raise money?

The company raised funding on Abundance in 2015 to fund the construction of the turbine. Once complete and operational, this second investment on Abundance refinanced the original construction finance.

How does the company expect to repay the investment?

The company expects to repay investors from revenues it earns over the life of the investment from the generation and sale of electricity from its wind turbine.

How is the company making an impact?

Upper Pitforthie Windgen is helping to increase the amount of renewable energy used in the UK’s electricity grid as we transition to a 100% low carbon energy future.

The 500kW turbine was installed in 2016
The 500kW turbine was installed in 2016

Key terms

Issuer Upper Pitforthie Windgen
Return 7.3% - 8.5% IRR (variable, based on performance)
Term period 17 years
Start date 1 April 2017
Maturity date 31 March 2034
Capital repayment Regular instalments
Amount raised £2,300,000.00
Return structure

Investment returns are paid every 6 months over the life of the investment (the first and last periods are shorter 3 months period).

The amount returned to investors in each period is linked to the performance of the company in the preceding 6 month period. In each period, the return paid goes first towards repaying an equal instalment of the original capital invested, and anything above that amount in each period will be paid as investment income.

Secured or unsecured Secured It is important to understand that security does not guarantee repayment of your investment or returns.
Early repayment options

The company can only make an early repayment of the investment in certain circumstances, such as a change of control of the company (for example, if some or all of the company was sold to a new owner) or a regulatory/tax requirement.

See the Debenture Deed for details of all circumstances in which the option for early repayment may be exercised.

Documents

Debenture Deed
Download PDF The debenture deed sets out the legal agreement and terms for this investment.

Payment schedule

This table gives a breakdown of what has been paid back to date on this investment, based on an example investment of £1,000. The return on this investment is linked to the performance of the project during each return period.

Payment schedule table
Payment date Capital repayment Dividend Total
8 September 2017 £14.71 £1.48 £16.19
9 March 2018 £29.41 £1.32 £30.73
7 September 2018 £29.41 £0.16 £29.57
11 March 2019 £29.41 £14.35 £43.76
6 September 2019 £29.41 £10.24 £39.65
10 March 2020 £29.41 £15.61 £45.02
8 September 2020 £29.41 £12.08 £41.49
11 March 2021 £29.41 £1.23 £30.64
8 September 2021 £29.41 £12.19 £41.60
11 March 2022 £29.41 £0.00 £29.41
8 September 2022 £29.41 £6.05 £35.46
10 March 2023 £29.41 £53.56 £82.97
8 September 2023 £29.41 £69.30 £98.71
8 March 2024 £29.41 £24.31 £53.72
6 September 2024 £29.41 £21.06 £50.47
11 March 2025 Variable Variable Variable
8 September 2025 Variable Variable Variable
11 March 2026 Variable Variable Variable
8 September 2026 Variable Variable Variable
11 March 2027 Variable Variable Variable
8 September 2027 Variable Variable Variable
10 March 2028 Variable Variable Variable
8 September 2028 Variable Variable Variable
9 March 2029 Variable Variable Variable
7 September 2029 Variable Variable Variable
11 March 2030 Variable Variable Variable
6 September 2030 Variable Variable Variable
11 March 2031 Variable Variable Variable
8 September 2031 Variable Variable Variable
10 March 2032 Variable Variable Variable
8 September 2032 Variable Variable Variable
11 March 2033 Variable Variable Variable
8 September 2033 Variable Variable Variable
10 March 2034 Variable Variable Variable
9 June 2034 Variable Variable Variable