Amberside Alp Crowd Bonds

Best Price Financial Services now offers investment into Amberside Alp bonds

Amberside ALP is providing investors the opportunity to purchase ISA qualifying secured bonds and benefit from tax free income generated by loans to infrastructure projects on a non-advised basis only.

The bonds are available with multiple maturity dates and rates of interest and are simple debt instruments that allow investors to lend money to a company in exchange for interest payments.

Potential return
5.55% p.a

Amberside ALP - 2022 Maturity Bond

Amberside ALP plc pools all investments to rank equally together, which is then lent to infrastructure projects normally as senior debt with a max LTV of 75%. Amberside ALP will have security over the borrowers assets, usually on a first charge basis. ALP does not take development risk, however it does take construction risk with infrastructure projects. All clients will be diversified across all loans, and typical projects include solar sites, hydroponics glasshouses, reserve power plants, and wind farms. Fees are taken from excess interest spread after interest is paid back to the investor.

  • Closing Date:
    5th April 2019
  • ISA Transfer:
    4th March 2019
  • Maturity Date:
    31st Jan 2022
Potential return
4.05% p.a

Amberside ALP - 2020 Maturity Bond

Amberside ALP plc pools all investments to rank equally together, which is then lent to infrastructure projects normally as senior debt with a max LTV of 75%. Amberside ALP will have security over the borrowers assets, usually on a first charge basis. ALP does not take development risk, however it does take construction risk with infrastructure projects. All clients will be diversified across all loans, and typical projects include solar sites, hydroponics glasshouses, reserve power plants, and wind farms. Fees are taken from excess interest spread after interest is paid back to the investor.

  • Closing Date:
    5th April 2019
  • ISA Transfer:
    4th March 2019
  • Maturity Date:
    31st Jan 2021
Potential return
3.55% p.a

Amberside ALP - Flexible Term Bond

Amberside ALP plc pools all investments to rank equally together, which is then lent to infrastructure projects normally as senior debt with a max LTV of 75%. Amberside ALP will have security over the borrowers assets, usually on a first charge basis. ALP does not take development risk, however it does take construction risk with infrastructure projects. All clients will be diversified across all loans, and typical projects include solar sites, hydroponics glasshouses, reserve power plants, and wind farms. Fees are taken from excess interest spread after interest is paid back to the investor.

  • Closing Date:
    5th April 2019
  • ISA Transfer:
    4th March 2019
  • Maturity Date: 1 month access (max 31st Jan 2022)
Potential return
8.80% p.a

Amberside ALP - Sterling Suffolk Only Bond

This is a fixed term, single company bond. Initial capital plus rolled up interest of 8.80% per annum should accrue and be paid out at maturity, which is planned for 31 January 2022.

Sterling Suffolk Limited is constructing a hydroponics glasshouse near Ipswich, Suffolk. Phase 1 construction of the roughly 8 hectare site should be completed in December 2018, and the glasshouse will be utilised to grow premium tomatoes hydroponically (without soil). The first crop should be planted in December 2018, and first crop is targeted for picking in February 2019. Sterling Suffolk Limited has a 5-year supply agreement in place with SunCrop Produce Limited who are a leading distributor of fresh produce to UK supermarkets. In particular they have been a strategic supplier to a premium supermarket chain for the last 25 years. Sterling Suffolk Limited is on track to deliver its forecast £4.5 million sales in 2019, although this is not guaranteed.

  • Closing Date:
    5th April 2019
  • ISA Transfer:
    4th March 2019
  • Maturity Date:
    31st Jan 2022

Capitalised terms set out in these Risk Warnings are defined in the Information Memorandum. You should read the Information Memorandum in full before deciding whether to invest and bear in mind the risks of investing in Crowd Bonds

Why Choose Amberside ALP?

Amberside ALP is giving investors the opportunity to purchase ISA qualifying secured bonds and benefit from tax free income generated by loans to infrastructure projects. The bonds are available with multiple maturity dates and rates of interest and are simple debt instruments that allow investors to lend money to a company in exchange for interest payments. Amberside ALP intends to lend to a range of UK infrastructure projects, giving further diversification to a traditional single company bond (although single company bonds are available if preferred by investors). The experienced team conduct professional due diligence on every transaction, provide a clear understanding and suitable mitigation of the risks involved, and support borrowers not served well by major high street banks.

The loans ALP makes to these companies will be secured against assets, so in the event of default, ALP will have a claim on the borrower’s assets. Amberside ALP is backed by specialists including Amberside Capital and CH1 Investment Partners.

Risk Warnings for Crowd Bonds

Debt-based Crowdfunding ('Debt Crowdfunding') can be divided into Peer-to-Peer Lending ('P2P Loans') and Unlisted Debt Securities ('Crowd Bonds'). Both are typically offered via Crowdfunding Platforms.

We offer an execution-only service; We do not give advice or recommendations. If you have any doubts as to the suitability of a particular product or Debt Crowdfunding in general, or you require advice of any kind, you should seek a personal recommendation from a professional adviser.

Do not invest in a Debt Crowdfunding product unless you have carefully thought about whether you can afford it and whether it is right for you.

Please also refer to the risk warnings and other information contained within the product documentation relating to the Debt Crowdfunding product that you have chosen.

General

  • The risks on these investments are much higher than those for deposits, and generally higher than those applying to more traditional investments, making them unsuitable for inexperienced investors.
  • The investor typically has limited information available to make a decision about a particular product, and the credit and investment risks could be mispriced meaning that the potential return may represent insufficient reward for the risks being taken by the investor.
  • The Crowdfunding Platform or other product provider may have conflicts of interest, e.g. its remuneration will usually be linked to transactions undertaken.
  • Due diligence on underlying loans/securities may be limited. There is a risk money may be obtained for fraudulent purposes and therefore subject to loss.
  • There is a risk that the platform or other product provider fails or its administration is poor. Following failure, a borrower may default as it may be uneconomic for investors holding small stakes to chase missing payments.
  • P2P loans & Crowd Bonds generally have fixed terms and it may not be possible to withdraw any cash before the end of the term. They should therefore be viewed as medium to long-term products.
  • Through peer-to-peer lending you are acting as a lender making a loan to an underlying borrower and the P2P Lending provider is facilitating this. An unlisted debt security is a debt instrument issued by a company (e.g. a bond). It is important to note therefore that Debt Crowdfunding products are not similar to cash deposits.
  • The money you put in is at risk and you could lose part or all of it. This is in addition to the risk of late or defaulted interest payments. Due to the risks involved, these products may only be suitable as part of a diversified investment portfolio.
  • Unlisted Debt Securities, P2P Loans, and P2P Lending providers are not covered under the Financial Services Compensation Scheme. This is the case even if the loans are held in a wrapper such as a SIPP or ISA.
  • Unlisted Debt Securities are a form of 'Non-Readily Realisable Security' ('NRRS').
  • Although some P2P lending providers have protection funds in place these funds tend to be small in comparison to the total of loans outstanding. They would therefore not be able to cover all the losses if a large proportion of loans defaulted.
  • Past default levels and losses experienced by a P2P lending provider or relevant to a particular Unlisted Debt Security are not a reliable indicator of future risks of default or losses. P2P Lending and/or Unlisted Debt Securities in general could also be influenced by external factors such as general economic conditions and this could reduce the benefits of diversification across loans or securities, and exhaust any protection funds a P2P Lending provider may have in place.
  • The repayment of both the capital and interest is dependent on the ability of the underlying borrower or company to pay interest and repay the loan or bond. Non-payment could arise from default, fraud, or firm failure. The P2P Lending or Crowd Bond provider is not liable to make up any shortfalls. The financial solvency of the P2P Lending provider itself could affect the level of any protection funds they may have in place and the ongoing collection of any capital or interest outstanding on loans on your behalf.

Innovative Finance ISAs

  • Even when held within an Innovative Finance ISA, P2P Loans and Crowd Bonds are not covered by the Financial Services Compensation Scheme.
  • Unlike a Stock & Shares ISA or Cash ISA, there is no automatic right to be able to transfer an Innovative Finance ISA to a different ISA Manager, although the terms & conditions of the particular Innovative Finance ISA account may permit this. It may therefore not be possible to transfer your Innovative Finance ISA to a different ISA Manager.

Taxation

  • The tax treatment of Debt Crowdfunding investments can be complex. Please refer to the product documentation for a summary of the tax consequences for investors generally. However, please be warned that:
    • taxation levels, bases and reliefs can change;
    • the summary will be based on assumed rates of taxation;
    • the reliefs stated will be the ones which currently apply;
    • there is an additional tax to pay – not all tax may be deducted at source; and
    • taxation levels, bases and reliefs depend upon your individual circumstances.
  • Changes in tax or other legislation may adversely affect the value of your investment.
  • If you are unsure about your tax situation, you should seek professional advice.

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