In partnership with Abundance Investment, Warrington Borough Council is raising £1 million via a Community Municipal Investment (CMI), as part of an effort to beat the UK government’s 2050 net-zero target by a full 20 years, according to a note from the crowdfunding platform.
Abundance is an investment platform that focuses on environmental and other offerings that seek to balance profit and purpose. Abundance notes that the Warrington CMI will be followed next by Leeds in the next few months, and a further 10 Councils are in the pipeline for their own product – all issued via Abundance Investment.
The Warrington CMI will help to finance a multi-million-pound solar and battery storage project near Cirencester. The electricity and revenues generated by the solar panels reportedly will be used to accelerate other green projects on behalf of Warrington’s community as part of its recent Green Energy Strategy.
Investors in the green bond will 1.2% per year in half-yearly payments over its 5-year term and can be sold via the Abundance Marketplace. The minimum investment is just £5.
Warrington Borough Council Leader, Cllr Russ Bowden, said the green bond “gives people a fantastic opportunity to make a positive contribution toward a carbon-neutral future while providing them with a financial return and deeper engagement with one of Britain’s most environmentally-focused local governments.”
Abundance Investment Joint Managing Director, Bruce Davis, stated:
“Following on from the success of the West Berkshire CMI, Warrington’s green bond is a perfect example of how enlightened councils up and down the UK can supercharge their efforts to tackle climate change by working in partnership with the public – whether in the local area or further afield. Local government green bonds are a practical and already popular way for people to be part of building back greener.”
CMIs have been developed by Abundance Investment in partnership with the University of Leeds, funded in part by the UK government and the EU. Abundance explains that these securities are a new source of financing for local authorities in the UK, which allow local citizens to invest directly in their council and get a competitive low risk, long term return, while helping to finance the green infrastructure investment the UK needs to ‘build back greener’ post-Covid-19.
The Warrington CMI is the second local government green bond to be issued via Abundance, following the launch of West Berkshire’s CMI in July which is now over 60% subscribed.
Abundance believes that CMIs could have a potential impact of as much as £3 billion if taken up by all 343 local authorities in England.
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