Investors starved of retail bonds
will be cheered by the announcement of an eighth Retail Charity Bond designed
to help charitable organisations grow.
Retail Charity Bonds are managed by
Allia, an independent, not for profit organisation, which is dedicated to
helping impact organisations grow; the latest issue is on behalf of Belong
Ltd which has the stated objective to ‘support older people to live their own
lives through the creation of vibrant village communities’.
The Belong Limited Retail Charity
bond will pay a fixed rate of 4.5% each year until June 2026.
The bonds have a minimum initial
subscription amount of £500 and are available in multiples of £100 thereafter;
they are available to wholesale and retail investors and investors are
permitted to sell them on the open market at any time during the life of the
bonds through their stockbroker.
The rate will be payable twice a
year in June and December - with the first coupon payment being made this
December.
The bonds are expected to be listed
on the Official List of the Financial Conduct Authority and investors are
permitted to sell them on the open market at any time during their life
through their stockbroker.
Authorised outlets are AJ Bell
Securities, Equiniti Financial Services, iDealing and Redmayne-Bentley LLP; the
offer period is expected to close at 12pm on 13th June, or sooner subject to
demand.
The bonds are expected to mature on
20th June 2026 with a final legal maturity on 20th June 2028.
Retail Charity Bonds connect
charitable organisations seeking unsecured loan finance with investors looking
for fixed income bonds listed on the London Stock Exchange’s Order book for
Retail Bonds (ORB).
Formed in 1991 through the transfer
of 39 traditional care homes from Cheshire County Council, Belong has developed
a unique ‘household model’ for dementia care; funds raised will be loaned, via
a loan agreement, to Belong Limited to further its charitable objectives
and to develop further Belong villages.
Tracey Stakes, chief executive of
Belong, said: ‘Belong villages were established as an alternative to the
conventional care model, and led by an individual's needs rather than an
institution’s requirements.
‘This pioneering approach to later
life care, promoting wellbeing through homely, smaller group living
arrangements, coupled with the emphasis placed on integration with the local
community, has proved a success.
‘As demand for our offering has
grown, we continue to look at ways to expand our portfolio and a successful
bond issuance will allow us to develop further villages across the UK.’
The Belong Limited Retail Charity
Bond follows previous issues for Golden Lane Housing, Hightown Housing Association,
Charities Aid Foundation, Greensleeves Homes Trust and Dolphin Living.
In total the bonds have raised more
than £150m since 2014; they have been popular with retail investors seeking
income and especially those with a strong ethical focus.
Michael
Dyson, of Bondinvest Capital, the specialist consultancy, said he thought the
bond reflected decent value, and that its 4.5pc rate was on par with other retail bonds issued in the past.
"It's
good to see another charity raising capital commercially through the bond
market," he said.