Charity Bank secures additional £230k equity investment from Esmée Fairbairn Foundation
Melanie May | 7 October 2020 | News
Charity Bank has secured a £230k equity investment from Esmée Fairbairn Foundation, as part of its current drive to raise new share capital.
Charity Bank is aiming to raise at least £3m in new share capital by the end of 2021, having raised nearly £5m in subordinated debt in 2019. Esmée Fairbairn Foundation’s investment brings its shareholding in the bank to £1m.
While approvals of new loans at Charity Bank slowed significantly at the outset of the pandemic, they are now experiencing a resurgence. Equity investment underpins its lending activity and for every £1m of capital invested, Charity Bank can make around £8m of new loans to charities and social enterprises.
Ed Siegel, Chief Executive, Charity Bank, said:
“The events of this year have been devastating for individuals, communities and businesses around the world, with charity and social enterprise hit particularly hard. The consequences of lockdown and the current uncertainty will be felt for years to come and charities and social enterprises will have a critical role in supporting society’s recovery from this crisis. As such, it is important that these organisations continue to have access to the funding they require to sustain and grow their activities.
“Last year we lent £50m to such organisations, representing a fifth consecutive year of increased lending. We’re determined to continue supporting the sector and with the backing of mission-aligned shareholders like Esmée Fairbairn Foundation, which was one of our founding investors, this will be possible. With the new investment we are announcing today, and further increases in our equity capital that we are aiming to secure this year and next, we will be able to help more social sector organisations through these challenging times and into the recovery.”
Caroline Mason CBE, CEO of Esmée Fairbairn Foundation said:
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“Charity Bank is a pioneer and pillar of the social investment landscape, lending to organisations across the UK and all impact areas. Its mission is completely aligned with ours. We were an early investor into Charity Bank, and we are thrilled to continue our support with our second capital investment of the year.
“Charity Bank has proven that lending to charities and social enterprises not only benefits society but can also be done within an effective business model. We hope models like this become the norm for the future of finance. The events of this year have been devastating for the social sector and the investment will go directly towards rehabilitating it and the communities who most need it. It was a natural fit for us, and we wish Charity Bank every success.”
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.