Risk Summary
Estimated reading time: 2 minutes. This summary contains information about the risks of investing in listed bonds offered by RA-ESG. You should read it carefully before making any investment decision.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.
1. You could lose all the money you invest
The bonds offered by RA-ESG are listed debt securities. Listing on a stock exchange does not eliminate investment risk: your capital is at risk and is not guaranteed. If the underlying sustainable energy projects, the issuing special-purpose vehicle, or RA-ESG itself fail to generate the expected revenue or become insolvent, you could lose some or all of the money you invest, including any interest you expected to receive.
Asset-backing and ring-fenced project structures reduce, but do not eliminate, this risk. Past performance and projected returns of up to 15% p.a. are not a reliable indicator of future performance.
2. You are unlikely to be protected if something goes wrong
RA-ESG is not authorised or regulated by the Financial Conduct Authority (FCA). The bonds offered are not covered by the Financial Services Compensation Scheme (FSCS), so you will not be able to claim compensation from the FSCS if RA-ESG, the issuer, or any project company defaults or becomes insolvent.
You are also unlikely to be able to take a complaint to the Financial Ombudsman Service if something goes wrong with your investment. Protections that apply to mainstream regulated investments — such as listed shares or deposits at a UK bank — do not apply here.
3. You may not be able to sell your investment when you want to
Although the bonds are listed on a stock exchange, they may still be illiquid in practice. Trading volumes can be very low, there may be no active secondary market at the time you want to sell, and no party is obliged to buy your bonds back from you before maturity. You should be prepared to hold your investment for the full term of the bond (typically 3 to 5 years) and not rely on being able to access your money earlier.
Even at maturity, repayment depends on the issuer having sufficient funds to redeem the bonds. If you need access to your money at short notice, this investment is not suitable for you.
If you are still interested, take 2 minutes to learn more
Before you invest, you should read the full investment memorandum in its entirety and consider seeking independent financial advice. You will also be required to confirm your status as a High Net Worth or Sophisticated Investor and, as a new investor, to observe a 24-hour cooling-off period before any investment can be confirmed.