8th Mar

Greensleeves Care issues Retail Charity Bond offering 4.25% due 2026

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.  

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