Retail charity bond launches to benefit housing charity
Melanie May | 26 June 2017 | News
A retail charity bond has launched to benefit The Dolphin Square Charitable Foundation.
Allia’s Retail Charity Bonds PLC will issue the Dolphin Square Charitable Foundation Retail Charity Bond, which offers 4.25% and is due on 6th July 2026. The funds raised will be loaned, via a loan agreement, to The Dolphin Square Charitable Foundation. The Foundation provides housing at market and sub-market rents for people on modest incomes who live or work in the City of Westminster and surrounding boroughs. It will use the Bond funds into help it provide more affordable housing in the City.
The Bonds have a minimum initial subscription amount of £500 and are then available in multiples of £100. The offer period is expected to close at 12pm on 30th June 2017. They are available to wholesale and retail investors and will pay a fixed rate of interest at 4.25% per annum until 6th July 2026, payable twice yearly on 6th January and 6 July of each year with the first coupon payment being made on 6th January 2018. The Bonds are expected to mature on 6th July 2026 with a final legal maturity on 6th July 2028.
This is the fifth retail charity bond to be launched by the Issuer, following issues for Golden Lane Housing (the housing arm of Mencap), Hightown Housing Association (formerly Hightown Praetorian & Churches Housing Association), Charities Aid Foundation and Greensleeves Homes Trust.
Olivia Harris, chief executive of Dolphin, said:
“Dolphin is playing a key role in solving London’s housing crisis by providing homes at genuinely affordable rents for workers that keep London ticking, such as chefs, nurses, drivers, teachers and actors. The funds raised through this Retail Charity Bond will be used to invest in more housing in London to take us closer to our strategic target of providing 1,000 affordable rental homes in the capital by 2020.”
Ram Gidoomal CBE, Chair of Allia, said:
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“This latest retail charity bond follows four successful issues which have between them raised £91m for four different charitable organisations. Allia’s Retail Charity Bonds platform is enabling charities to access the finance they need to create greater social benefit, and we are grateful to the support of Peel Hunt and the volunteer directors of the Issuer.”
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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.