When it comes to financing the clean energy transition, the time to act is now.
Over the last year, Canadians have watched in horror as Australia has burned and Eastern Canada has flooded at alarming rates. Alongside, we’ve heard loud and clear the call from global scientists: that we have just ten years to stop catastrophic climate change.
In response, Canadians are waking up. We’re taking steps to reduce our carbon footprints; we’re calling for government action; and excitingly, we’re recognizing the impact potential -- and financial opportunity -- of investing in climate solutions. As major financial institutions around the world begin to build climate change into their investment strategies; we’re thrilled to give you the opportunity to do the same.
This March we will be launching our new issuance of CoPower’s Green Bonds providing you with an opportunity to push back against climate change, and put your money to work to finance a clean, green future. The bonds will open for sale in British Columbia, Alberta, Saskatchewan, Manitoba Ontario, Nova Scotia and Yukon on March 4th, and in Quebec on March 20th.
Green Bonds Drive the Clean Energy Future - How it Works
Your investment in CoPower’s Green Bonds supports the transition to a green energy future.
When you invest in a CoPower Green Bond, your capital is pooled with the investments of other forward-thinking, green investors. We then lend out that capital to finance community-scale green energy projects, such as solar rooftops, LED lighting retrofits, and residential geo-exchange projects.
These projects sell clean energy or save energy to support loan repayments to CoPower that then flow back to bondholders as interest payments, all while reducing carbon emissions.
Take CoPower’s investments in LED lighting retrofits in Ontario, Alberta, and B.C, as one example. With the support of bondholders, CoPower has provided over $12 million in loans supporting 350 condo buildings to upgrade from old, energy intensive-lighting to modern, energy-efficient LED lighting. As condo owners reap the savings from improved energy efficiency on their utility bills, fixed monthly payments are used to pay back the CoPower loan.
These projects have considerable impact and financial potential -- and your investment helps get more of them off the ground. Traditional lenders, such as banks and pension funds, often overlook these community-scale green projects because of their small size, despite their obvious potential.
That’s where CoPower comes in. We bring together a community of forward-thinking investors to finance these projects, helping to drive a clean energy future. It’s a win-win proposition. Together, we help get the climate back on track, earn attractive returns, and provide catalytic financing to help grow our nation’s clean energy industry.
Earn 4% interest annually
Our new issuance is a 5-year Green Bond offering 4% interest annually, with a minimum investment of $10,000. Investors can opt for either simple interest or compound interest payments. The simple interest option offers investors the opportunity to receive quarterly, fixed payments as their bond matures. The compound interest option reinvests quarterly interest payments, offering a higher expected payout at the end of the term.
Invest Smart and Diversify your Portfolio
The majority of Canadians’ investments are in the traditional stock market, leaving them vulnerable to market shocks, fluctuations and geopolitical changes. CoPower Green Bonds are different. They’re a private market investment, meaning that they’re not publicly traded. This provides you with an opportunity to diversify and shield a portion of your portfolio from public market downsides.
And while you diversify your portfolio, we’re diversifying ours. Your new investment in CoPower Green Bonds will support us in lending to new green energy projects, but in order to maintain diversification and mitigate risk, it will also be backed by our existing portfolio of project loans.
Save on your tax bill by investing via your RRSP or TFSA
CoPower Green Bonds are eligible to be held in most types of registered accounts (eg. RRSP, TFSA). The simplest route for most clients will be through a registered account at Questrade, Canada’s largest independent online investment broker. Certain restrictions and administrative fees charged by Questrade will apply.
For some of our investors, but not all, the tax savings you can enjoy by investing via a registered account will outweigh these fees. With that in mind, we’ve created asimple calculatorto help you understand whether it’s more profitable to invest via a registered account or directly with us. Learn more about holding CoPower Green Bonds in an RRSP or TFSA at Questrade here.
Quick, Simple and Online
Investing can be complicated. Purchasing your CoPower Green Bond isn’t. You can purchase your investment online, through our easy-to-use platform. There are no documents to print out, no office you need to visit. Invest from the comfort of your kitchen table with just a few clicks.
After you invest, you’ll be able to monitor the financial and impact performance of your investment via your online investor dashboard. We’ll keep you updated on the projects you’re supporting and the broader impact you’re having.
Measurable environmental impact
CoPower Green Bond investors have provided financial support to more than 1,650 green energy projects, which to-date have helped to avoid nearly 16,000 tonnes of CO2 emissions -- the equivalent of taking 3,400 cars off the road for one year. Over the lifetime of your investment, you’ll receive a quarterly statement detailing the CO2 emissions savings your CoPower Green Bonds are supporting.
CoPower is now powered by Canada’s impact bank
In November 2019, Vancity Community Investment Bank (VCIB) acquired CoPower which continues to operate as a wholly owned subsidiary of VCIB. This exciting development is expected to lead to more (and larger portfolios of) clean energy projects, and more emissions cuts across the country.
In addition, this acquisition opens up new synergies that leverage VCIB's deep expertise in financing social purpose real estate, such as the opportunity to underwrite loans for commercial real estate projects, while at the same time, investing in energy efficiency and clean energy measures in that same building.
Join the Movement
Since our first Green Bond issuance in 2016, CoPower has built a community of nearly 800 investors who are financing the clean energy future. Our investors are people like Leah Neigum, a 29-year old who downsized to a tiny solar-powered house and used some of the savings to purchase CoPower Green Bonds. They’re people like Jory Cohen, an impact investment manager, who added CoPower Green Bonds to his portfolio as part of his effort to transition to a 100% impact investment portfolio.
And they’re people like you. Get started as a clean energy investor today.