In an innovative bid to raise funds in a climate where bank lending remains restricted, the UK’s fastest growing utility provider, Spark Energy, has launched a new bond via investment advisor, Beer & Partners, which offers attractive returns of up to 26% per annum including two years’ free gas and power.

The Spark Energy Bond is a £5,000 two-year product, which guarantees high returns of 6% per annum paid quarterly to investors, as well as two year’s free gas and power for the home, or other nominated property, up to a maximum value of £1,000 per year. The Bonds are available from 1 August 2009.

For an initial investment of £5,000, an investor will receive £600 interest and up to £2,000 free gas and power over the two year period – a potential total return of £2,600 or £52% on the original investment.*

Each investor can apply for up to £25,000 worth of Spark Energy Bonds in multiples of £5,000. A total of 200 bonds are available.

PJ Darling, chief executive of Spark Energy, comments: “By launching the Spark Energy Bond, we are aiming to offer investors attractive and secure returns while meeting our fundraising target and enabling the company to continue along its strong growth path. In the current financial climate where traditional lending from banks is restricted, businesses face an even greater challenge to raise investment capital, and thinking out of the box is essential. Following the success of the King of Shaves’ innovative ‘Shaving Bond’ launched earlier this year, which offered strong returns of 6% per annum, in addition to an ongoing supply of free products for all investors, we have been inspired to launch our own offering using the same concept.

“At 6% per annum, the lucrative return offered by the Spark Energy Bond is twelve times greater than the current Bank of England Base Rate and, as an added incentive, we are including two year’s free gas and power for all bond holders, a move which we expect to be popular, particularly as utility bills remain high.

“This fundraising initiative will enable us to invest in new software technology and the rolling out of Smart Meters to all of our customers, as well as ensuring our supplies of gas and power are secured over the longer term.”

Michael Weaver, CEO of Beer & Partners, added: “The balance of investment opportunities is shifting as capital markets become too risky and traditional savings rates fail to deliver appealing rewards. As such, direct business investment is an increasingly attractive option for those seeking better returns. Spark Energy’s initiative is an innovative, yet very pragmatic way of tackling funding gaps by offering small and medium size investors attractive returns in addition to some interesting energy cost savings.”

To apply for a Spark Energy Bond, or for further information, investors should visit the company’s Investor Portal at www.sparkenergy.co.uk/investors and click on the link for Spark Energy Bond, or contact the Investor Relations Team at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .