Charity retail bond launches to benefit CAF
Melanie May | 24 March 2016 | News
A new charity retail bond has launched on behalf of the Charities Aid Foundation (CAF).
Launched by Retail Charity Bonds, the Charities Aid Foundation Retail Charity Bond will see all funds raised loaned to CAF. It offers 5% interest per annum and is due to mature in 2026.
It is the third bond to be issued through the Retail Charity Bonds platform, which was created as an issuing vehicle to enable UK charities to raise medium term debt finance through bonds issued to retail and wholesale investors.
The bonds are available to wholesale and retail investors and the 5% per annum fixed rate of interest will be payable twice yearly on 12th April and 12th October of each year. The first coupon payment will be made on 12th October this year. The bonds are expected to mature on 12 April 2026 with a final legal maturity on 12 April 2028.
John Low, Chief Executive of CAF, said:
“CAF has a 90 year record supporting civil society by helping people to support charities safely and effectively and helping charities make the most efficient use of their money. The funds raised from this Retail Charity Bond will enable us to further our work in a variety of ways, including expanding services for donors and for charities through CAF Bank.”
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.