Green light for renewable loans: Assetz Capital launches green energy account

- Assetz Capital launches new peer-to-peer product specifically for green loans
- New account reflects the growing demand for responsible and ethical investment
- The product has a target return of 7% gross pa, and is the first P2P renewable energy product to also incorporate a provision fund
Assetz Capital has launched a new Green Energy Income Account, the first of several specialist investment accounts to be released and allowing lenders to invest in a diversified portfolio of renewable energy projects via the peer-to-peer platform.
The account has a target return of 7% gross p/a, and lenders who want to invest into renewable energy projects such as wind turbines and solar panels can now invest into this account and be actively diversified across all Assetz Capital loans to projects that match the ‘green’ criteria.
Previously, lenders would need to have the time and the experience to manually browse through the loan catalogue and select loans individually before they invested. The new account makes investing in renewable energy projects easier, quicker and more accessible. In particular, the Green Energy Income Account, like all Assetz investment accounts going forwards, will actively diversify an investor across every matched loan in a much quicker way than trying to manually invest across multiple loans.
The Green Energy Income Account also incorporates the platform’s first provision fund. This protection mechanism for investors is in addition to the platform’s existing security measures, whereby tangible security is taken on every loan and this reflects investors’ wishes to be further insulated where possible from the effects of any late payments or defaults on loan repayments.
Assetz Capital has lent more to renewable energy projects in the UK than any other platform, having lent £10m for green projects in just 18 months.
Stuart Law, CEO at Assetz Capital commented, “Growing numbers of investors want to know where their money is being put to use, and have a wish for it to be used ethically and for the benefit of society. Our new Green Energy Income Account satisfies those wishes and also delivers a great target return of 7% pa gross, more in line with high performance investment funds than bank savings accounts.
“Without doubt, there are good returns to be had from green investments when chosen wisely and especially as all projects within this investment account will have the benefit of Government backed income in the form of Feed in Tariffs as part of the income generated for investors. Our credit team is also extremely experienced, with many years of lending to green and social entrepreneurs behind us: they know what makes a good investment opportunity for investors.”
The platform has seen steady growth in demand for responsible investing, with green loans funding quickly.
- The loans are backed by tangible security so should one default, that security can be used to try to recover lenders’ capital.
- There is a minimum investment of £20.
- If a lender needs their money back early, via the secondary market they can sell on loan parts so long as there are other investors to buy them.
To find out more about Assetz Capital or the Green Energy Income Account, click here.
- November 17, 2014