Retail Charity Bonds has launched a new bond to help charitable organisations grow.
The Belong Limited Retail Charity bond will pay a fixed rate of 4.5 per cent each year until June 2026.
The bonds will be managed by Allia, an independent, not for profit organisation, which is dedicated to helping impact organisations grow.
The vehicle connects charitable organisations seeking unsecured loan finance with investors looking for fixed income bonds listed on the London Stock Exchange.
The funds raised will be loaned, via a loan agreement, to Belong Limited and will be used to further its charitable objectives and to develop further Belong villages.
Tracey Stakes, chief executive of Belong, said: "Belong villages were established as an alternative to the conventional care model, and led by an individual's needs rather than an institution’s requirements.
"This pioneering approach to later life care, promoting wellbeing through homely, smaller group living arrangements, coupled with the emphasis placed on integration with the local community, has proved a success.
"As demand for our offering has grown, we continue to look at ways to expand our portfolio and a successful bond issuance will allow us to develop further villages across the UK.”
The bonds have a minimum initial subscription amount of £500 and are available in multiples of £100 thereafter.
The bonds are available to wholesale and retail investors.
The rate will be payable twice a year in June and December - with the first coupon payment being made this December.
At any time during the life of the bonds, investors are permitted to sell them on the open market through their stockbroker.
Authorised outlets are AJ Bell Securities, Equiniti Financial Services, iDealing and Redmayne-Bentley LLP.
The bonds are expected to mature on 20 June 2026 with a final legal maturity on 20 June 2028.
The offer period is expected to close at 12pm on 13 June.
This is the eighth Retail Charity bond to be launched by the issuer, following previous issues for Golden Lane Housing, Hightown Housing Association, Charities Aid Foundation, Greensleeves Homes Trust and Dolphin Living.
In total the bonds have raised more than £150m since 2014.
Tim Morris, IFA for Surrey-based Russell & Co Financial Advisers, said: “I'm a big advocate of supporting charity so these look good in principle.
"It could sit well with my clients who are happy to support my fundraising - especially those who have a strong ethical focus.”
aamina.zafar@ft.com
