3rd Nov

Golden Lane Housing returns to ORB - 3.9% Retail Charity Bond, due 2027

Golden Lane Housing Ltd, a division of Mencap that specialises in renting accommodation to people with learning disabilities is looking to borrow money from retail investors by issuing a ten-year retail bond offering 3.9% due 2027.   

The charity was established in 1988 by the Royal Mencap Society and has built a substantial property portfolio - it either owns or leases 798 homes, which provides housing for 1,645 tenants in the UK. 

Its main source of income is rent from its 1,300 tenants for their accommodation, plus landlord services such as maintenance and making bespoke adaptations to the properties to meet the needs of its tenants.   

The bonds will be issued by Retail Charity Bonds PLC, a special purpose issuing vehicle created and managed by Allia, an independent not-for-profit with a social mission – dedicated to helping impact organisations and initiatives grow.  

Golden Lane Housing was the first Retail Charity Bond to be listed on ORB when it raised £11m with its initial launch in June 2014; funds raised will be loaned, via a loan agreement, to Golden Lane Housing Ltd. 

Phil Caroe, director of Social Finance at Allia, said, ‘Allia created the Retail Charity Bonds platform to help charitable borrowers access the finance they need from ethically minded investors. It is a testament to its success that our first charity to use the platform, Golden Lane Housing, is now returning to the retail bond market in order to continue its work.’ 

John Tattersall, chair of Retail Charity Bonds plc, said, ‘This seventh issue shows that the uniformity of our structuring and on-lending process continues to be as efficient as I and my fellow volunteer directors had anticipated.’  

The bonds have a minimum initial subscription amount of £500 and are available in multiples of £100 thereafter;  they will pay a fixed rate of interest at 3.9% per annum payable twice yearly on 23rd November and 23rd of May of each year.  

The bonds are expected to mature on 23rd November, 2027, with a final legal maturity on 23rd November, 2029. 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. Authorised distributors are

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.  

This is the seventh Retail Charity Bond to be launched following successful previous issues for Golden Lane Housing, Hightown Housing Association, Charities Aid Foundation, Greensleeves Homes Trust and Dolphin Living; in total the bonds have raised nearly £150 million.  

Alastair Graham, director of Golden Lane Housing, said, ‘There are approximately 1.4 million people in the UK who have a learning disability, yet only 16 per cent of those known to the local authority are in secure long-term tenancy or own their own home. By offering safe and appropriately adapted accommodation, with security of tenure, we enable our tenants to have greater independence and control over their lives. 

‘We raised £11 million in our previous Retail Charity Bond issue, which was invested into 30 properties, delivering homes for 112 people – a very successful outcome for GLH as well as our tenants and investors. We are now delighted to be returning to the market for a second issue, which will help us to continue to address the enormous housing challenges faced by people with a learning disability and their families, whilst delivering a regular income return to our investors.’     

See the RNS announcement here 

 More details here

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