You are here: Home - Investing - Experienced Investor - News -

The ISA offering 10% and tackling UK’s waste problem

0
Written by: Danielle Levy
18/02/2019
Savers who would like to fund new green and social infrastructure can do so via the Abundance Innovative Finance ISA (IFISA), and invest in a project offering a 10% annual return.

Abundance is currently offering savers the opportunity to invest in CoGen Limited, which uses a new technology called ‘gasification’.

Rather than incinerating waste, this process takes waste that cannot be recycled and would be taken to a landfill and converts it back into its original constituent elements, which can then be recovered and reused. The process creates electricity and heat for other uses.

The investment is via a debenture, which is a tradeable form of corporate bond, in CoGen Limited. The project offers investors a 10% annual fixed return over a period of four years and six months.

So far, investors have committed £2.9m to CoGen – which is close to the minimum investment it was seeking to guarantee the project will go ahead. It is hoping to raise £7m in total.

Savers can allocate all or some of their £20,000 annual tax-free ISA allowance to an IFISA, which allows investors to make money from their peer-to-peer loan investments tax-free.

Abundance works with businesses, the government and the financial services industry to provide funding to new infrastructure projects. Investors who open an IFISA with Abundance can invest in other projects available on the platform, and gain exposure to projects that investors are selling their holdings in via the secondary market.

While the returns are attractive, particularly in comparison to the interest that is available via a typical cash ISA, it is worth noting that these investments carry higher risks. Investors may not receive their capital back and these investments are not covered by the Financial Services Compensation Scheme.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week