how do northern solar bonds work?
TRANSCRIPT
Northern Solar Bonds Webinar Workshop
Who We Are
Ambrose Raftis President, Green Timiskaming Development Co-operative
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Who We Are
Marc van BeusekomSenior Development Consultant, Options for Green Energy
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Who We Are
A renewable energy co-operative
(One of more than fifty in Ontario)240 + members made up of your
friends and neighboursPromoting and investing in a local
green economy.
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Northern Solar Bonds
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5 Year Term BondMinimum Investment $500
Year 1-5 4.5%Principal Repayment At maturity
Bonds Offered20 Year Annuity Bond
Minimum Investment $1,000Year 1-5 5%
Year 6-10 6.50%Year 11-15 8.25%Year 16-20 12.75%
Principal Repayment5% per year beginning in year 1
OR10% per year beginning in year 11
What We’re Building Green Timiskaming in partnership with
Soventix Canada and Endura Energy received approval for ten “FIT” contracts from the Ontario Power Authority250 kW Earlton Arena rooftop solarNine 500 kW ground-mounted solar
projects near Englehart
Solar Energy Projects
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Partnership Structure
51% Owner OperatorRegional Co-Op
Developer
Development and construction financing
Not for Profit Co-Op development Partner
Engineering, procurement and construction
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Solar Power in Action
250 kilowatts outputLease agreement with EarltonTarget date – completion by late 2015
Earlton Arena Project
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Solar Power in Action Nine 500 kilowatt installations
Each site is approximately 7 acres in sizeLease agreement with land ownersTarget completion dates – 2015 - 2017
Ground Mounted Projects
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Feed in Tariff (FIT)
A 20 year power purchase agreement with Hydro One
GT receives a guaranteed fixed price per kW hour produced
Provides a reliable long-term income stream
Solar Energy Revenues
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The Clean Energy Industry
Clean Energy Jobs up 37% in 5 years23,700 direct jobs in the sector in 2013
(surpassing the oil sands industry!)$6.5 Billion invested in 2013
(up 45% in one year!)The global clean energy transition is well
underway and is now BIG BUSINESS in Canada!
Foreign investment currently leading the way in Canada
Green Energy Sector Growth in Canada
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Local Benefits
Local ownership and accountabilityInvestment and lease incomeRetain profits from our energy resourcesHiring local suppliers and contractorsSurplus revenues will be invested in
additional economic development projectsGenerate long term employment
opportunities
Advantages of a Community
Energy Co-Op
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Northern Solar Bonds Total Capital Cost: ~ $18 million
Member Investment: require $2.5 million in bonds over next three years to fund 10 projects at 51% ownership
$125,000 for Earlton Arena, $265,000 per Solar Garden
Offering Statement for Bonds approved by Financial Services Commission of Ontario
Bonds available on web site
Investment Required
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Northern Solar Bonds 20 Year Annuity Bonds
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20 Year Annuity BondMinimum Investment $1,000
Year 1-5 5%Year 6-10 6.50%
Year 11-15 8.25%Year 16-20 12.75%
Principal Repayment
5% per year beginning in year 1
OR10% per year beginning in
year 11
Investment Opportunity
Northern Solar Bonds Repayment Option 1
Return on Investment
6.64% average return on outstanding principal
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Northern Solar Bonds Repayment Option 2
Return on Investment
7.0 % average return on outstanding principal
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Northern Solar Bonds Early Redemption
Can redeem principal after 5 years provided replacement capital is available
Rising interest rate over time makes bonds attractive to future investors
Administrative fee of 2% to redeem principal if co-op provides replacement
Fee waived if member brings in replacement member
Redemption Terms
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Northern Solar Bonds 5 Year Term Bonds
Competitive annual interest of 4.5%Entire Principal repaid at end of 5th yearMinimum investment of $500Option to renew at end of term may be
available$12,250 returned after 5 years on $10,000
bond
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Investment Opportunity
Northern Solar Bonds
$165,000 grant from Community Energy Partnership Program (CEPP)
$67,500 in bonds sold so far in March 2015. (~50% of amount needed for Earlton Arena).
Funds Raised to Date
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Community Wealth
GT surplus revenues from Projects to be held by Community Wealth Non-Profit
Community Wealth is the guarantor for member co-ops
Surplus used to finance additional sustainable development projects
Re-investing in Communities
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Local Support
Northern Solar Bonds part of the new but growing “Community Bonds” alternative financing model
Practical way to circumvent the banks and invest in beneficial and profitable social enterprises.
Spread the Word aboutNorthern Solar Bonds
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How to Purchase a Bond
http://greentimiskaming.ca/purchase_a_solar_bond
Review FAQ, Investment guideDownload Offering StatementFill out Subscription formMail in form with cheque or completed
Pre-Authorized Debit Form
Northern Solar BondsNow Available
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