Allia £2.5m charitable bond to fund 50 affordable Scottish homes
Melanie May | 31 August 2016 | News
Allia Impact Funding has made its first allocation for 2016 from its charitable bond programme for Scotland, with a £2.5m bond to finance 50 affordable homes in Fort William.
The bond will enable Lochaber Housing Association to build the houses, with the interest on the loan of over £0.5m to be converted into a charitable donation, and given by the Scottish Government to housing associations for the construction of new social housing.
Allia is working with the Scottish Government to fund the development of affordable housing across Scotland, helping them to invest more than £50 million in charitable bonds over two years, which will provide support for almost 1,000 new homes.
According to Allia, its investment in affordable housing through charitable bonds now totals £40m, while this latest bond will mean that the Scottish Government has now provided development finance for 581 affordable homes, generating over £9m for charities of which £6.7m will go towards the construction of new social housing.
Scottish Housing Minister Kevin Stewart said:
“Innovative financing schemes such as charitable bonds play a major role in helping us deliver this expansion in housing supply. We invested £25 million last year and have committed to invest the same again this year. Through these bonds we are also maintaining Scotland’s leadership in financial innovation, working with partners to deliver more for less public investment.”
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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.