News

20th Jun

The Dolphin Square Charitable Foundation Retail Charity Bond 4.25% due 2026


Retail Charity Bonds PLC today announced the launch of The Dolphin Square Charitable Foundation Retail Charity Bond offering 4.25% due 6th July 2026.   

The Bonds will be issued by Retail Charity Bonds PLC, a special purpose issuing vehicle created and managed by Allia, a charity that supports individuals and organisations who create social benefit. 

The vehicle connects charitable organisations seeking unsecured loan finance with investors looking for fixed income bonds listed on the London Stock Exchange. The funds raised will be loaned, via a loan agreement, to The Dolphin Square Charitable Foundation. 

The Bonds are available to wholesale and retail investors and will pay a fixed rate of interest at 4.25% per annum until 6 July 2026, payable twice yearly on 6th January and 6th July of each year with the first coupon payment being made on 6th January 2018. 

The Bonds are expected to mature on 6th July 2026 with a final legal maturity on 6th July 2028. 

The Dolphin Square Charitable Foundation is a housing charity that seeks to provide well-designed, good quality housing at market and sub-market rents for people on modest incomes who live or work in the City of Westminster and surrounding boroughs. The Charity and its subsidiaries operate in inner London and generally all of Dolphin’s properties are within 30 minutes’ travel time of the City of Westminster. 

The Charity works closely with Westminster City Council in both determining the needs of those living and working in Westminster and planning to help meet those needs. Dolphin currently owns and manages 600 homes and has a further 196 homes under development. 

This is the fifth Retail Charity Bond to be launched by the Issuer, following successful issues for Golden Lane Housing (the housing arm of Mencap), Hightown Housing Association (formerly Hightown Praetorian & Churches Housing Association), Charities Aid Foundation and Greensleeves Homes Trust. At any time during the life of the Bonds, investors are permitted to sell the Bonds (within market hours and in normal market conditions) on the open market through their stockbroker. 

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

The offer period is expected to close at 12pm on 30 June 2017. The Issuer retains the right to close the offer early, in conjunction with the Lead Manager. 

The Bonds are 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 Order book for Retail Bonds.   


Authorised Distributors 

 AJ Bell Securities Limited 

Barclays Bank PLC 

Equiniti Financial Services Limited 

Hargreaves Lansdown 

Redmayne-Bentley LLP 


Peel Hunt is acting as Lead Manager (the “Lead Manager”) on the issue. 

Commenting on the launch, Olivia Harris, Chief Executive of Dolphin, said:   “Dolphin is playing a key role in solving London’s housing crisis by providing homes at genuinely affordable rents for workers that keep London ticking, such as chefs, nurses, drivers, teachers and actors. The funds raised through this Retail Charity Bond will be used to invest in more housing in London to take us closer to our strategic target of providing 1,000 affordable rental homes in the capital by 2020.”   

Ram Gidoomal CBE, chair of Allia, said   “This latest Retail Charity Bond follows four successful issues which have between them raised £91m for four different charitable organisations. Allia’s Retail Charity Bonds platform is enabling charities to access the finance they need to create greater social benefit, and we are grateful to the support of Peel Hunt and the volunteer directors of the Issuer.”  

Henrietta Podd, Director, Peel Hunt, said:   “Today’s launch is a further example of a high quality and proven charity with a clear social aim looking to access a new source of medium-term, unsecured loan finance through the issuance of a Retail Charity Bond. At the same time, it provides an opportunity for investors to invest for income in a quality organisation with clear social benefits in an easily accessible and transparent manner.”   

John Tattersall, chair of Retail Charity Bonds plc, said:   “This fifth issue shows that the uniformity of our structuring and on-lending process is proving to be as efficient as I and my fellow volunteer directors had anticipated.” For further information about Dolphin, please go to http://dolphinliving.com/   


About Dolphin and the Charity   


The Charity was founded in June 2005 and has been funded by a total of around £125 million that was gifted to it from the proceeds of the sale of leasehold interests in the Dolphin Square mansion block in Pimlico by Westminster City Council and Dolphin Square Trust. 

The Charity is a housing charity that seeks to provide well-designed, good quality housing for people on modest incomes who live or work in the City of Westminster and surrounding boroughs. 

The Charity works closely with Westminster City Council in both determining the needs of those living and working in Westminster and planning to help meet those needs. The first five years of the Charity’s existence saw its public benefit works focused on grant making activity for a range of community-based projects with the aim of alleviating the affordable housing shortage.

From 2010, the Charity accelerated its plans for building its own portfolio in order to directly address the need for more affordable housing stock, resulting in a significant growth in completed homes from 2013. As at 31 March 2013, the Charity had 16 completed homes. As at 31 March 2017, Dolphin had 600 completed homes and 196 under development.  

Dolphin provides homes to rent at market and sub-market rents. Sub-market rent housing is provided at intermediate, affordable and social rents. Intermediate rents are capped at 80% of the market rent. 

Affordable rents are also capped at 80% of market rent and take into account local housing needs. Social rents are based on a target rent using a formula set by Government. Dolphin also has a small number of homes (seven) let under regulated tenancies where rents are set by a local rent officer.  

Eligibility for homes at sub-market rents varies by scheme but, generally, prospective tenants must have an annual household income of no more than £90,000 and be unable to access a suitable home on the open market. 

Dolphin operates in inner London and generally all its properties must be within 30 minutes’ travel time of the City of Westminster. Dolphin manages 600 homes, has a target for 1,000 homes by 2020, and employs 14 staff at its office in Westminster.

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