Bonds are increasingly seen as a way forward for smaller, independent developers who in the current economic climate have found it harder to raise funds.
The first £6 million of the money raised will be earmarked for building Wind Prospect’s 4MW consented two-turbine wind project at South Staffordshire College’s Rodbaston campus.
The remaining £4 million will provide development capital to bring forward some of the company’s UK projects.
The minimum investment in the renewable energy bond – or "ReBonds" – is £500 and is expected to yield a fixed rate of return of 7.5% over a four year period, although investments of £10,000 or more will see an 8% return.
Ecotricity was the first UK wind developer to access bond finance with its £10 million "EcoBonds" issue in September 2010.
This was 50% oversubscribed, demonstrating considerable appetite for ethical renewable investments.
Elsewhere, Cape Wind is considering tapping the bond market for part of the financing for the United States’ first offshore wind farm.
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