Care home non-profit Greensleeves Care has issued one of the UK’s first retail charity bonds, with a target of £30m.
The 4.25% 10-year bond will be used to grow the charity’s portfolio of 20 residential, dementia and nursing homes across England.
Retail charity bonds were introduced in 2014 as a way for non-profits to access low-cost unsecured funding. The bonds are issued through special purpose issuing vehicle Retail Charity Bonds and listed on the London Stock Exchange, with interest paid twice a year.
Three other charities have issued bonds using the scheme since 2014. Two of them, Golden Lane Housing and Hightown Housing Association, did so to invest in property.
Chris Doherty, chief financial officer at Greensleeves, said the bonds are suitable for charities that are run on “quite a commercial basis”, ones that generate their own income and are not too reliant on third-party donations and fundraising.
He said : “Investors are very keen to invest into the charitable sector, but equally they’re very keen to make sure they don’t lose their money by doing that.”
The offer period is expected to close on 24 March, although previous retail charity bonds each closed early. and the bonds are expected to mature on 30 March 2026.
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