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Hackney Green Investment 2

Fund energy efficiency improvements at a local school and other green projects

Interest rate 4.2% a year

Term 5 years

Target £500k

Raised £490,289

11 days left

About Hackney Council

Hackney Council has one of the most ambitious climate action programmes in the country. In recent years it has switched all buildings to 100% renewable electricity, installed zero carbon energy measures on buildings including the Hackney Empire, planted thousands of trees and made half of its streets better for walking and cycling by pioneering programmes such as School Streets.

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How is the council using the money raised?

The money invested through Hackney Green Investment will help fund a range of environmental initiatives across the borough. In this investment they expect to fund the replacement of windows in a local school to improve energy efficiency, as well as other eligible green projects.

This investment is Green Loan Principles compliant

This investment has been issued under a Green Finance Framework. This is a voluntary standard which sets out how the council intends to manage its green local authority securities in the future, and outlines how they will meet the Green Loan Principles. This assures investors that funds raised can only be used to help them deliver on eligible green projects from within this framework, and Abundance will monitor the use of funds across the investment term to ensure the principles are being adhered to.

Hackney Council wants build a greener borough that is resilient to the impacts of climate change

Key terms

BorrowerHackney Borough Council

Use of funds

Funding Eligible Green Projects under the Council's Green Finance Framework, with an expected focus on Energy Efficiency.

Interest rate4.2% a yearThis is the interest rate paid by the Local Authority to lenders and does not include the cost of fees paid to Abundance in its role as Arranger and Agent.

Term period5 years after end of 'Initial interest period'

Maturity date30 June 2030

Capital repaymentRegular instalments

Offer open date3 March 2025

Offer close date31 May 2025The Loan Opportunity may be withdrawn before the Offer Close Date at the Borrower's discretion subject to it posting notice of withdrawal on the Abundance website.

Minimum borrowing amount£5.00

Maximum borrowing amountThere is no formal Maximum Borrowing Amount. The Borrower may raise such amount as agreed with Abundance in the context of its wider borrowing limits.

Initial interest periodThis will start on the date the lender makes their investment and ends on 30 June 2025.

Interest periodsFrom 1 July to 31 December and 1 January to 30 June each year, starting from 1 July 2025.

Return structure10 semi-annual payments of Interest & Capital on the last day of each Interest Period, with the last one on the Maturity Date.

Arrangement fee0.75% of total amount raisedThis is the fee paid to Abundance in its role as Arranger. The interest rate above is quoted after fees.

Management fee0.20% of total amount raised per yearThis is the fee paid to Abundance in its role as Agent. The interest rate above is quoted after fees.

Early repayment optionsThe local authority has the option to make a full early repayment of the loan on any payment date. An early repayment fee equal to 12 months’ Interest will apply.

Documents

Loan Conditions

Download PDF Together with the key terms, the loan conditions form the legal agreement that define the terms of the investment.

Green Finance Framework

Download PDF This document provides the overarching criteria and guidelines for how the council will raise funding for eligible green projects and ensure ongoing compliance with the Green Loan Principles.

Payment schedule

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