11th Apr

Charity Begins With Homes - Retail Charity Bond Offers Smaller Investors 4.4% p.a. due 2015

Hightown Praetorian & Churches Housing Association (Hightown) has launched a Retail Charity Bond, offering small investors a ‘unique opportunity’ to invest in charitable activities in their local community.

The bond has been launched to help the 4,400-home Association provide affordable housing in Hertfordshire, Buckinghamshire and Bedfordshire.

'This bond issue provides an opportunity to invest in a local charitable housing association which helps homeless people, people with disabilities and people who cannot afford to buy or rent at market rates in Hertfordshire, Buckinghamshire or Bedfordshire’ said David Bogle CEO. ‘The funds raised will enable Hightown to continue to build and develop new affordable homes in an area of very high demand and need.’

The bond is the second to be issued through the Retail Charity Bonds platform created by Allia, a charity that develops social investment opportunities. The platform was established with investment bank Canaccord Genuity to enable UK charities to raise medium term debt finance through the retail bond market.

The bonds are available to wholesale and retail investors with a minimum initial subscription amount of £500 and in multiples of £100 thereafter, paying a fixed rate of interest of 4.4% per annum, payable on 30th October and 30th April each year.

Canaccord Genuity is the lead manager on the issue; Authorised Distributors are iDealing, Interactive Investor and Redmayne Bentley and trading in the secondary market is via ORB.

Adrian Bell, Head of Debt Markets UK, Canaccord Genuity said ‘This new issue from Retail Charity Bonds for Hightown is another step towards making buying bonds in charitable and ethical enterprises a mainstream investment activity.

Hightown has grown considerably since 2003, largely as a result of an active, new build development programme. It manages over 4,400 homes and employs about 600 full and part time staff. As at 31 March 2014, the Charity had an annual turnover of £45 million and assets of £398 million.

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