30th Mar

5% Retail Charity Bond Closes a Week Early

Investors starved of income have flocked to invest in the latest Retail Charity Bond causing the issuer to close its books a week earlier than the intended deadline.

This was the third bond issued through the Retail Charity Bonds platform, which was created as an issuing vehicle to enable UK charities to raise medium term debt finance through bonds issued to retail and wholesale investors. The Bonds were issued by Retail Charity Bonds PLC and the funds raised will be loaned, via a loan agreement, to Charities Aid Foundation (CAF), one of the largest providers of philanthropic services to charities and donors worldwide. 

The bonds were available to wholesale and retail investors and will pay a fixed rate of interest 5% per annum, payable twice yearly on 12th April and 12th October of each year with the first coupon payment being made on 12th October 2016. The Bonds are expected to mature on 12th April 2026 with a final legal maturity on 12th April 2028. 

The Bonds have a minimum initial subscription amount of £500 and are available in multiples of £100 thereafter. 

The offer period was expected to close at 12 noon on 6 April, but on Tuesday 29th March it was announced that the issue had been closed because of high demand. 

The When Issue Dealing (WID) date will be announced soon; check DIY Investor for future retail bond issues.

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