Big Society Capital invests further £2.5m in Charity Bank shares
Melanie May | 8 June 2017 | News
Big Society Capital has invested £2.5 million in the share capital of Charity Bank with a commitment in principle to invest a further £2.5 million on or before 1st December this year.
This investment will complete Big Society Capital’s pledge made in March 2014 to invest up to £14.5 million in ordinary shares of Charity Bank.
Charity Bank has lent over £180 million to charities and social enterprises since 2002 and is seeing continued growth. It made £28 million of new loan approvals in the first five months of 2017, with the loan book growing by more than 25% per year in the two years to 31st December 2016.
Other investors include The Mercers Charitable Foundation, which invested an initial £200,000, followed by a further £1 million in 2015, and the Barrow Cadbury Trust, which invested £250,000 in 2016. Charity Bank is inviting other charitable trusts, foundations and social purpose organisations to join them by investing in its share capital.
George Blunden, chairman of Charity Bank, said:
“These further injections of capital from Big Society Capital will enable us to meet the growing demand for loans from charities and social enterprises.
“Share capital is vital to our mission. It underpins the bank and enables us to leverage our savers’ money. An investment in Charity Bank creates a multiple effect – for every £1 of share capital invested we can lend £8 to help create lasting social change in our communities.”
Anna Shiel, head of origination of Big Society Capital added:
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“Over 850 loans have now been made to organisations totalling more than £180m. These loans have helped support people all around the UK, with 97% of organisations saying it has contributed to achieving their mission and 68% saying the loan helped them to expand their services. Upon the completion of our investment, we look forward to seeing more people and communities supported by their work.”
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.