The wait is over! Community Energy Development Co-operative has a new opportunity for investors. Whether you missed out on the first round of investment, want to add to your portfolio, or are a new investor testing the waters of responsible investing, this is for you.
What is it?
Bonds Series N1-5 is a new 5-year bond delivering 6.13% interest. CED Co-op is offering this bonds series to further finance our growing portfolio of solar energy projects. In total we are open to $800,000 of investment. Each investor can invest $1,000 in a calendar year. The maximum subscription you can hold is $10,000. This maximum isn’t affected by any investments you already have.
Why only $1,000?
When a co-op creates an opportunity for investment they must issue an offering statement. An offering statement is like a prospectus, it outlines the securities being offered, the industry, and the risks so that investors are properly informed. This offering statement must be reviewed and approved by the Financial Services Commission of Ontario in order to proceed. Our last offering statement closed in November 2015 and generated $9.6 million in investment.
Once an offering statement closes, we can no longer accept investment in its securities. But there is an exception! We can offer a small amount of investment outside of an offering statement. This is why the Bonds Series N1-5 is limited to $1,000 per member per year – to align with this exception.
Why can’t you invest less than $1,000? Such small investments probably aren’t worth it for you as an investor, or us as administrators.
Can I use a registered account?
Yes, but it may not make financial sense.
Investors who already have a registered account with the Canadian Worker Co-operative Federation (CWCF) can add this investment to their account.
Investors without a CWCF account will need to set one up if they want their investment to be registered (TFSA, RRSP). CWCF charges $50/year as an account fee, and $50/year as a transfer fee (when we pay out your yearly return). This means that you would lose $500 over the 5-year term in fees. When your return is only $1,186 you’re actually losing money. Check out the chart below for a breakdown:
| Bonds Series N1-5 – $1,000 investment | |||||
| Year | Account Fees | Transfer Fees | Total Fees | Return | After Fees |
| 1 | $50 | $50 | $100 | $253 | $153 |
| 2 | $50 | $50 | $100 | $246 | $146 |
| 3 | $50 | $50 | $100 | $238 | $138 |
| 4 | $50 | $50 | $100 | $229 | $129 |
| 5 | $50 | $50 | $100 | $219 | $119 |
| Total | $250 | $250 | $500 | $1,186 | $686 |
| Return | 6.13% | -11.80% | |||
Who can invest?
Only members of CED Co-op can invest. The good news is: you can become a member at any time! Visit our membership page and fill out the application. Once the board has reviewed and approved your membership you’re ready to invest!
How to invest?
Now that all your questions are answered and you’re ready to invest, visit our Investment Page and support renewable energy.
