# Charity bond raises £27 million for housing development

- Link: https://fundraising.co.uk/2015/04/23/charity-bond-raises-27m-for-housing-development/
- Published: 2015-04-23T17:05:40+01:00
- Author: Howard Lake

A retail charity bond offer has closed after hitting its target of £27 million earlier
than expected. The funds will be used by Hightown Praetorian & Churches Housing 
Association for its housing development programme, providing affordable homes across
Hertfordshire, Buckinghamshire and Bedfordshire.

The charitable association, which manages over 4,400 homes, as well as providing
housing and support to vulnerable people,  expected the bond offer to run from 31
March to 27 April. Instead they were able to close it on 17 April.

## Half of bond investors are individuals

The bonds pay a fixed rate of interest of 4.4% a year and are expected to mature
in 2025.

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Eight institutional investors provided around £13.5 million, with the other half
coming from individual retail investors.

## Retail Charity Bonds

This is the second bond to be issued through the [Retail Charity Bonds](http://charitable-bonds.allia.org.uk/)
platform created by Allia, the charity that specialises in developing social investment
opportunities, in association with global investment bank Canaccord Genuity.

Tim Jones, Chief Executive of Allia, said:

> “Once again we are pleased to see such a strong interest from investors in this
> opportunity to invest for financial return and a positive social impact. This 
> bond means that Hightown will be able to build much-needed housing and provide
> even more support in its local community.”

 

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