Just got an e-mail promoting bonds in a solar energy park in spain offering returns of 11.4% guaranteed (it says by a bank) for 12 years plus your original investment back at the end of the term (in €25,000 units). All sounds to good to be true. Anyone else have any opinions on this. Not sure I can mention the company promoting it here but they are based in leixlip, Co Kildare
Agreed.I have been looking at investing in renewable energy plants now for the last 6 months. At the moment if you are offered any such product - take care. There is a legal dispute in relation to the price for energy generated through Spanish plants which will only be resolved at the end of September. The ROI will be less that what you are offered regardless.
This means that a secure, fixed selling price of 0.4403 €/kwh for a period of 25 years must be paid if sold to the Spanish national grid! So a single kW of power sold will earn 44 cents!
The expectation is that the following table will be the basis for the upcoming few years:
Importantly, a revision of the tariff rates is due at the end of September 2008 and, although speculative, it is anticipated that a reduction of 20% to 30% will be implemented. Only installation connected to the grid before this date would fall into the tariffs set above.
Well I could manage my own pension in a personal holding company and I would also be the trustee of that pension managed for my own benefit, so this statement doesn't particularly impress me as I could be the company owner, pension trustee, and pension beneficiary all in one. There's nothing to stop me investing a portion of that pension in any investment at any risk level, as long as it is legal.Some of our clients are investing pension funds into these bonds, only after their pension trustees approved the investment.
For your information, we are launching a NEW promotional campaign offering the same bonds at 9.8% income yield in line with the Spanish Governments reduction in feed-in tariffs.
These bonds may also be offered to institutional investors.
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