# First Retail Bond for care sector raises £33 million in under a week

- Link: https://fundraising.co.uk/2017/03/17/first-retail-bond-care-sector-raises-33m-week/
- Published: 2017-03-17T08:21:26+00:00
- Author: Melanie May

**The first Retail Charity Bond to be issued for the care sector has closed after
less than a week, having raised £33 million.**

 

The bond, for [Greensleeves Care](http://www.greensleeves.org.uk/), pays an interest
rate of 4.25% a year for a term of nine years, and saw strong demand from a range
of institutional, ethical and individual investors.

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The bond will be issued through [Allia](http://www.allia.org.uk)’s [Retail Charity Bond](https://allia.org.uk/social-finance/retail-charity-bonds/)
platform. According to Allia, it is the largest Retail Charity Bond and the lowest
interest rate to date. It brings the total raised through the platform to £91million,
following previous issues for Golden Lane Housing (£11m), Hightown Housing Association(
£27m) and Charities Aid Foundation (£20m).

 

Greensleeves Care is the first charitable care home provider to raise finance through
this type of listed bond issue, which can be sold to individuals as well as institutional
investors. Unlike some forms of funding, the bond finance is not secured against
assets and no capital repayments are required until the end of the bond term.

 

The finance from the bond will enable Greensleeves Care, which provides care and
accommodation for the elderly, to increase the number of residents it supports through
buying and developing new homes, as well as helping to pay off all existing debt.

 

With a total of £50 million of bonds created, Greensleeves Care also has the option
of raising up to a further £17 million by selling more of the bonds in the future.

 

The lead manager for the bond issue was Peel Hunt LLP as part of its debt capital
markets collaboration with JC Rathbone Associates.

 

Tim Jones, chief executive of Allia, said:

 

> “The success of this latest Retail Charity Bond reinforces the strength of demand
> for impact investment opportunities through mainstream financial products. Allia
> is very pleased to help Greensleeves Care increase the number of older people 
> it cares for and to have proven the viability of this funding route for other 
> charities in the care sector.”

 

Paul Newman, chief executive of Greensleeves Care, added:

 

> “We are delighted that we have been part of the largest ever Retail Charity Bond
> issue. The money will be put to immediate use to buy and develop new homes and
> sites as we invest in our portfolio and our ability to increase the number of 
> older people who benefit from our care.”

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