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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • RT @RBS: NatWest wins ‘Best Online Student Banking Provider’, ‘Best Online Current Account Provider’ and ‘Best Direct Current Account Provi…
  • RT @YourMoneyUK: Well done to @EmporiumHQ for winning Best Direct Pet Insurance Provider #YMA2019 https://t.co/Bzcey4k2xO
  • RT @EmporiumHQ: WHAT A NIGHT! We're delighted to announce we landed another prestigious award as Best Direct Pet Insurance Provider last…

Read previous post:
brexit vote
BLOG: Brexit endgame creates opportunities for savvy investors

Brexit has deterred both British and foreign investors from the UK, but the endgame is in sight and it's time...

Close