Solar Investment Bond
8.5% per annum for five years and a full capital repayment
This is an opportunity for Investors to purchase a Solar Bond for 10,000 Euros that pays an annual income of 8.5% for five years and a full capital repayment.
Subscriptions to the bonds are available until end of December 2009.
The investment opportunity is to purchase a solar energy bond from a solar installation.
The Developers, RGJ Power Ltd., designs, builds, operates and maintains renewable energy power plants and sells green sustainable energy to the Spanish energy grid. The company's head office is located in London, UK from where they direct the activities of engineering and development of their Solar Energy Plants, Wind Energy and Biomass Energy.
Spain has been one of the most successful countries in the public promotion of electricity from renewable energy sources (RES-E) , particular ly wind electricity. This support has been based on a feed-in tariff (FIT) scheme. Although the basic structure of the system was implemented in 1998, it has been modified in 2004 and 2007.
The installations will be built and connected to the national electricity network under the legislation and f ixed Feed In-Tariff of the RD 661/2007. Therefore these projects will benefit from the high selling price of 0,4403 /kwh for a period of 25 years (plus CPI correction). After 25 years the installation will benefit from a further 15 year reduced fixed in tariff. Official studies of solar radiation confirm that Spain has the highest irradiance levels in Europe which is reflected in the high solar energy productivity of the region.
Each Bond is secured against the rights of an individual installation (PV modules, trackers, inverters etc), with a maximum installed capacity of 100 KW, and have individual contractual rights and obligations regarding the production and sales of the electricity to the electricity companies (based upon the guarantees as set out in the Royal Decree).
Each bond costs 10,000 Euros and pays a fixed interest of 8.5% per annum for five years and a full capital repayment .
A Solar Project that fits the criteria of a legal installation and registration requires an initial level of due dilligence including :
- Contractual arrangements for the land
- The EPC and O & M contracts
- Feed – in tariff eligibility
- Review of the insurance arrangements
Each installation will come complete with a full due diligence set of documentation comprising:
- Land Lease Agreement
- Ministry for Industry Commercial permissions
- Environmental Study and Report
- Contract with Utility Company
- Confirmation of National Grid Connection and Tariffs
- Final Checks Certification and Licenses
The bond is secured against first charge ownership of the installation and underpinned by the Royal Decree. The Spanish government is committed to achieving a target of 12 percent of primary energy from renewable energy by 2010 and 20% of primary energy by 2020. The Spanish feed in tariff, made under Real Decreto 661/2007 gurantees the purchase of all electricity generated from this installation for 25 years at a fixed cost.
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