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Hounslow Green Investment 1

Supporting community climate and greening initiatives across the borough

Interest rate 4.1% a year
Term 5 years
Target £1m
Raised £237,371
63 days left
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About Hounslow Council

Hounslow declared a climate emergency in 2019, and the Cabinet adopted the Climate Emergency Action Plan in 2020. This commits the council to achieve net zero for the council’s own estate and operations by 2030 whilst influencing wider borough emissions reduction. 

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How is the council using the money raised?

Funds will be used to help fund energy efficiency, green energy and greening projects within existing council green programmes:

  • Hounslow Community Energy Fund, which supports community-led decarbonisation projects including demand reduction, energy efficiency and renewable energy upgrades.
  • Thriving Communities Fund, which provides grants to charities, voluntary and community groups and places of worship in Hounslow.
  • Schools Decarbonisation which supports energy efficiency upgrades.
  • Clear Air for Schools which support a variety of interventions like air purifiers, cycle infrastructure and improving the building’s energy efficiency.
  • Active travel which supports cycleways installation and upgrades.
  • Circular Economy hubs with interventions like reuse and repair events.
  • Grow for the Future campaign, which is a pioneering Hounslow initiative and the UK’s first policy to transform unused council land to grow food and educate children on healthy living.

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.

A repair initiative in Hounslow that supports reuse and recycling of household appliances
Hounslow Council is supporting community-led climate and greening initiatives

Key terms

BorrowerLondon Borough of Hounslow
Use of funds

Funding Eligible Green Projects under the Council’s Green Finance Framework, with an expected focus on Green Energy Generation, Natural Capital and Energy Efficiency.

Interest rate4.1% 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 September 2030
Capital repaymentRegular instalments
Offer open date2 June 2025
Offer close date1 September 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 September 2025.
Interest periodsFrom 1 October to 31 March and 1 April to 30 September each year, starting from 1 October 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.
Set up 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.
Administration fee0.20% of the outstanding loan amount, 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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