To date, Rendesco has funded the systems through a combination of bank project finance debt and shareholder loans. To take advantage of the growth opportunity with its major clients, Rendesco is seeking to raise £5.5 million through this Bond Offer. The proceeds of the Bond Offer will be combined with additional bank debt and used to finance the continued roll out to 100 systems by 2020.
It is intended that all system installations will be accredited for the RHI and secured through 20-year lease agreements. The index linked RHI payments over 20 years are forecast to repay the Bonds in full within seven years. Rendesco targets 100 site completions by 2021 and this would give the company an income stream of £44million over the 20 year period.
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