Award winning care home provider offers investment opportunity to investors starved of retail bonds
Operating independently since 1997, Greensleeves Home Trust,
operating as Greensleeves Care, emerged from the Women’s Royal Voluntary
Service and provides quality residential, dementia and nursing care, comfort
and security, to around 800 residents across 20 residential care homes,
including two nursing homes, in the Midlands, South and East of England.
The charity is now seeking to raise between £20-30m after
launching a retail bond through Retail Charity Bonds, a special purpose issuing
vehicle created by UK charity and social investment specialist Allia, that
connects charitable organisations seeking unsecured loan finance with investors;
the bond is offering 4.25 % due 2026.
The bonds are available to retail investors and will pay a coupon
twice yearly on 30th March and 30th September of each year with the first
coupon payment being made on 30th September 2017.
The funds raised will be loaned, via a loan agreement, to
Greensleeves Homes Trust; the bonds are expected to mature on 30th March 2026
with a final legal maturity on 30th March 2028.
The bond has a minimum initial subscription amount of £500
and are available in multiples of £100 thereafter. The offer period is planned to
close on 24th March 2017 at 12pm although the Issuer retains the right to close
the offer early in conjunction with the Lead Manager, in the event of
oversubscription.
The bond is expected to be listed on the UK Listing
Authority's Official List and admitted to trading on the London Stock
Exchange's regulated market and through the electronic Orderbook for Retail
Bonds (ORB).
Recognised with a raft of awards for the quality of its care
in 2016, Greensleeves Care prides itself on its highly qualified and loyal staff
and as a company achieved an 84.2% ‘good’ or ‘oustanding’ rating from the Care
Quality Commission.
It is underpinned by strong market dynamics with a rapidly
ageing population and a declining number of care home beds.
Greensleeves has high levels of, predominantly privately
funded, occupancy, and delivers strong and sustainable cash flows which it
returns to improve and expand services to its beneficiaries.
The charity
has a sustainable business model that delivers growth and social value
resulting in award-winning care.
Greensleeves
Care has a balanced approach to growing its portfolio, based on a mixture of
acquisitions, redeveloping the existing estate and managing the development of
new homes to ensure operational efficiency.
Led by an experienced management team with significant
sector experience, Greensleeves Care is committed to its long-term strategy of
delivering quality care and nursing services to an increased number of older
people.
This is the fourth Retail Charity Bond to be launched,
following successful issues for Golden Lane Housing, Hightown Housing
Association and Charities Aid Foundation.
Paul Newman, chief executive of Greensleeves Care, said: ‘Greensleeves
is a growing charitable organisation and the funds raised will be used to
diversify our sources of funding and allow us to invest for the future and in
our key aim to expand our provision of high quality care.’
Tim Jones, Chief Executive of Allia, added: ‘Quality care
for the elderly is a significant and growing issue. Allia is delighted to
welcome Greensleeves Care as the fourth bond to be issued on the Retail Charity
Bonds platform. We will continue to help charitable organisations such as
Greensleeves Care to expand their services and further their ambitions by accessing
the strong demand from this investor market through Retail Charity Bonds.’
Henrietta Podd, Director, Peel Hunt, said: ‘Socially
responsible investing continues to grow in popularity. Retail Charity Bonds
offer opportunities for investors to invest in a diverse group of quality
organisations with clear social benefits, as well as offering charities a new
source of medium-term, unsecured loan finance.’
Authorised distributors in the retail space are:
AJ Bell Securities
Limited
Alliance Trust Savings Limited
Barclays Bank
Equiniti Financial Services Limited
Interactive Investor Trading Limited
Redmayne-Bentley LLP
Peel Hunt is acting as Lead Manager on the issue.