Abundance Debentures for retirement income?

[nun]

Abundance is a UK company that invests in renewable energy schemes and sells debentures to the public.

https://www.abundancegeneration.com/

The investment is long term, usually lasting for 20 years, although there is an unregulated market where you can sell your debenture if there's anyone who wants to buy it. There is a 1.5% management fee charged by Abundance.

The investor might invest $1000 and then receive annual income that is composed of some return of capital and some interest. An example is here

https://www.abundancegeneration.com/projects/#!/3323084/calculator

The internal rate of return is given as 7% and each year for 18 years the investor receives $55 in return of capital and $44 in interest making a total payment of $1798. What are your thoughts?

 

[Gill]

Run, don't walk. As a debenture holder you are an unsecured creditor for the entire term of the bond. Sounds extremely risky to me.
Bruce

 

[nun]

Run, don't walk. As a debenture holder you are an unsecured creditor for the entire term of the bond. Sounds extremely risky to me.
Bruce

I think that's true in the US, but not the case in the UK. However, these things still look risky as it's a small company in a small volatile sector.

 

[calmloki]

Debentures do have some advantages. Much to be said for being able to just clean them in a glass by the sink.