Triodos Bank, a leading ethical bank, have launched an Innovative Finance ISA (IFISA) offering investors access to bonds issued by charities and other social organisations.
The platform offers a range of opportunities enabling people to invest directly in equity or bonds issued by organisations delivering positive social and environmental impacts.
Crucially, the bonds are eligible to be held in the Innovative Finance ISA (IFISA) therefore allowing investors to receive the interest they earn on these investments tax-free.
Furthermore, people can invest as little as £500.
Similarly, the platform launches with three bond offers, with interest rates ranging from 5% – 7%.
Lastly, the Innovative Finance ISA is available within the current £20,000 personal allowance, alongside cash and stocks and shares ISAs. As with all investments, capital is at risk.
1. Mendip Renewables: aims to raise £1.8 million by 31 March to take a 5MW operational solar farm in Somerset into community ownership. Investors can earn 5% interest per year, increasing in line with the annual retail price index, repayable over 17 years. An estimated £1.4 million of profit will be contributed to a community benefit scheme over the life of the project (see notes to editors).
2. Thera Trust: a charitable group of companies providing care and housing for people with complex learning disabilities aiming to raise £5 million to provide 14 new homes. Investors will earn 5.5% interest per year over a 6-year term.
3. Rendesco: raising £5.5 million to develop green energy from ground source heat pumps and is paying 7% interest per year over a 7-year term. They are aiming to develop 100 sites, with a focus on retirement homes and providing low-carbon heating to keep the elderly warm.