LINTON HYDRO
7.5% SECURED BOND MAY 2016

£2.5 million raised
Offer now closed

About Linton Hydro

Linton Hydro Limited (‘Linton Hydro’) was established to develop a new pre-accredited 280 kW hydro power scheme at the Linton Lock on the River Ouse in North Yorkshire (the ‘Linton Lock scheme’).

The company’s directors and shareholders have significant experience in the development and construction of hydro power schemes, with complimentary backgrounds in fisheries science, hydro technology and civil engineering. This is the third river hydro project that Triodos have worked on with members of the Linton Hydro team, following the successful financing and development of a 300kW scheme on the River Dart in Devon and a 100kW scheme on the River Dove in Derbyshire.

Planning permission for the Linton Lock scheme was granted in 2015 and a lease is in place for the site. In partnership with Triodos, we have raised £2.5 million through a secured bond issue to fund the construction of the scheme in 2016 and also to acquire a 100% shareholding in Flowpower Limited which operates an existing 100 kW hydro power scheme adjacent to the site (the ‘Flowpower scheme’). The Linton Lock scheme is expected to begin generating electricity in the first quarter of 2017.

The Linton Hydro shareholders have an equity capital investment of £494,000 in the two schemes and this investment will remain in the company as equity until the secured bonds are repaid in full.

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The Linton Lock scheme

The Linton Lock scheme is a 280 kW run of the river hydro scheme which is forecast to generate approximately 1,250 MWh of clean electricity each year – enough to power around 300 homes1. Some of the power generated by the scheme will be sold to a local free range chicken farm at a mutually beneficial rate, with the balance sold to the national grid.

The Linton Hydro scheme will bring additional environmental benefits to the River Ouse through the installation of a modern fish pass alongside the turbines. Currently migratory fish species struggle to progress upstream to their historic spawning grounds due to difficulty in passing the lock. An existing dilapidated fish pass at the lock will be refurbished and a new modern fish pass installed as part of the scheme which will significantly improve the migration of salmon, sea trout, brown trout, lamprey and eels in the river.

The Flowpower scheme

The Flowpower scheme is a fully operational hydro power scheme which was developed and commissioned in 2012 by members of the Linton Hydro team. It has a generating capacity of 100 kW and is expected to generate approximately 620 MWh of electricity each year from 2016 which is enough to power around 150 homes1.

The Flowpower scheme has a power purchase agreement in place with LoC02 Energy, an independent sustainable energy provider.

As with the adjacent Linton Lock scheme, environmental considerations have played an important role in its development.

Both schemes will benefit from a guaranteed 20 year index-linked income stream through the Government’s Feed in Tariff for renewable energy generation, subject to full accreditation of the Linton Lock scheme.

1. Estimate based on figures from the Department of Energy and Climate Change showing actual generation from hydro power and showing that annual UK average domestic household consumption is 4,115 kWh

About Hydro Power
 

RELIABLE

Hydro power today generates enough electricity to power around 1.1 million homes1.

ROBUST

Hydro power benefits from long-lasting technology – systems can last for over 100 years2.

EFFICIENT

A modern hydro turbine generator can convert over 70% of the energy in the available water into electricity - more efficient than any other form of power generation2.

CLEAN

There are no direct C02 emissions from hydro power schemes making it one of the greenest of clean energies2.

1. Estimate based on figures from the Department of Energy and Climate Change showing actual generation from hydro power and showing that annual UK average domestic household consumption is 4,115 kWh

2. http://www.british-hydro.org/hydro_facts.html

Key features of the Linton Hydro Bond Issue

Issuer

Linton Hydro Limited.

Target amount:

£2,500,000.

Term:

10 years; repayable in eight annual equal instalments with the first instalment payable on 30 June 2019 and the final instalment payable on 30 June 2026.

Minimum investment:

£2,000; a lower minimum investment of £400 applies for investors who reside within a 15 mile radius of Linton-on-Ouse.

Interest:

7.5% gross per year, fixed and payable (net of UK basic rate tax) annually in arrears on 30 June in each calendar year.

Risk warning:

Payment of interest and capital is not guaranteed and is dependent on the successful construction and operation of the Linton Lock scheme and the continued successful operation of the Flowpower scheme.

Security:

Secured by way of a first charge debenture over all of the group’s assets.

Unlisted:

The bonds are not listed on a recognised investment exchange but they are transferable and Ethex will operate a matched bargain market for the bonds should there be buyers.

Timetable:

Launched 23 May 2016; closed 29 June 2016

Risk warning

Investment decisions must only be made on the basis of the offer document and not on any information provided in this summary. Investing in Linton Hydro bonds is not the same as depositing money in a bank account as your capital is at risk and you may not get back the full amount that you invested. If you are unsure as to the suitability of the investment, you should contact an independent financial advisor. Linton Hydro bonds are not covered by the Financial Services Compensation Scheme.

Linton Hydro Limited is a company registered in England (10141737). Registered address: Woodwater House, Pynes Hill, Exeter, United Kingdom, EX2 5WR
Promoted by:
5526b90e85a348124aa2eeb5_Triodos_Bank_logo.svg
This financial promotion has been issued and approved by Triodos Bank NV (incorporated under the laws of the Netherlands with limited liability, registered in England and Wales with branch number BR3012). Authorised by the Dutch Central Bank and subject to limited regulation in the UK by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request. Registered office: Triodos Bank, Deanery Road, Bristol, BS1 5AS. VAT reg no 793493383. Calls to and from Triodos Bank may be recorded for training and monitoring purposes.

For more information