Arena Capital Partners has launched a new promissory note investment product promising returns of up to 30 percent in a bid to raise €20 million from Irish investors for wind energy projects.
The investment firm, based in Santry, Dublin, has raised £100m since 2014.
The financing will be used to acquire, develop and operate a portfolio of renewable energy assets, the company said.
The minimum investor investment for Arena Wind Energy Investment XVII is €10,000 over a period of five years. Investors can opt for an “income option” of 5 percent per year or a “growth option” of 30 percent at maturity.
Arena said in its investment prospectus for the product that over the past seven years it has “developed into a dominant player in the small to medium sized wind market in Europe”.
Promissory note investments of this type are not regulated by the Central Bank
The company has developed and acquired over 120 wind turbines in Northern Ireland, the UK and Italy and is targeting more than 50 turbines by 2022, it said.
Arena said it recently sold a large portfolio of 109 turbines in Northern Ireland and the UK to London-based institutional fund manager Bluefield Partners.
“The Company will use a significant portion of the funds raised from its recent asset sale to redeem maturing promissory notes,” reads its latest investment prospectus.
Arena did not respond to a request for comment and questions about the level of returns for existing investors.
The promissory note market in Ireland remains active despite the recent difficulties faced by investors in the Dolphin property scheme.
That Sunday independent has also reported in recent months that another investment firm, Solar 21, which had raised up to €250m in promissory notes from Irish investors for a renewable energy project, had delayed some repayments.
Concerns have already been raised that promissory note investments of this type are not regulated by the central bank and are not covered by a statutory compensation scheme.
https://www.independent.ie/business/irish/arena-capital-launches-loan-note-to-raise-20m-for-wind-energy-projects-41939555.html Arena Capital issues promissory note to raise 20 million euros for wind energy projects