# Charity Bank secures additional £230k equity investment from Esmée Fairbairn Foundation

- Link: https://fundraising.co.uk/2020/10/07/charity-bank-secures-additional-230k-equity-investment-from-esmee-fairbairn-foundation/
- Published: 2020-10-07T12:08:44+01:00
- Author: Melanie May

**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](http://www.CharityBank.org) 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](http://www.esmeefairbairn.org.uk)’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.

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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:

> “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.”

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