debentures

Hi there,

My name's Tom, I work at Abundance.

Just responding to Steve's question on whether Debentures can be repaid earlier by the Issuer.

There are some circumstances in which a Debenture Issuer could make an early repayment, but these are restricted. Generally, the Debenture can only be repaid early if there is a change of control. Under this circumstance, an independent valuer would be appointed to determine whether any premium should be paid and if so, how much, on top of the outstanding capital, to mitigate for the loss of the expected return to investors.

The early repayment rights of the Issuer will be specific in each Debenture, so always check the Debenture Deed. There can be other reasons why the Issuer may be able to repay early. A good example is the Engynious Schools project which installed solar panels on schools across the UK. If any of the schools were to shut down during the life of the Debenture, thereby reducing the size of the project, the Issuer would be able to repay a proportion of all investors' Debentures (pro-rating across everyone).

I hope that helps, get in touch if there are other related questions.

Thanks,
Tom