CAF Retail Charity Bond raises £20m

The Charities Aid Foundation Retail Charity Bond has closed early after just one week having raised £20 million. The offer saw strong demand from both institutional and retail investors and closed over-subscribed.

    The bond is the third to be issued through the Retail Charity Bonds platform, created by Allia to enable charities to raise loan finance from mainstream investors through bonds listed on London Stock Exchange. The platform has now raised a total of £68 million for CAF, Golden Lane Housing and Hightown Housing Association

The CAF Bond will pay investors 5% a year over a term of 10 years. The benefit of being listed is that investors will be able to buy and sell bonds at any time during that period on London Stock Exchange’s Order book for Retail Bonds.

Dr John Low, Chief Executive of Charities Aid Foundation, said: “We are delighted at the reception to the Charities Aid Foundation Retail Charity Bond and its early closure. The proceeds of the Bond will be used to further our work, enhancing CAF’s services for donors and the thousands of charities we work with.”

Tim Jones, CEO of Allia commented: “The success of this latest offer demonstrates the ability of Retail Charity Bonds platform to allow established UK charities like CAF to access a new source of funding. We created Retail Charity Bonds to help charities deliver their social mission, and this bond for CAF will result in widespread benefit across the charity sector. Allia will continue to work with more charitable organisations and connect them with investors seeking financial return with social benefits.”

Adrian Bell, Head of Debt Markets UK, Canaccord Genuity, added: “This is the third Retail Charity Bond to be launched and the third to close early. The success achieved by all three demonstrates the strength of demand from investors for these fixed income social investment opportunities that support UK charities. Investors are able to benefit from a transparent and liquid market that offers a financial return and creates tangible social benefit.”

CAF helps people and companies support the causes they care about and provides financial services for the charity sector. It provides a range of services for individual and company donors, including charity accounts, charitable trusts, and legacy services, company accounts and payroll giving. It also provides fundraising support services for charities, social investment and financial services for the not-for-profit sector, including investments and a range of banking and loans through CAF Bank.

 

For enquiries please contact:

 

CAF

Ben Russell

Simon Ward

Tel: +44 (0)3000 123286
Bell Pottinger

Victoria Geoghegan

Elizabeth Snow

Tel: +44 (0)20 3772 2562
Canaccord Genuity

Adrian Bell

Henrietta Podd

Tel: +44 (0)20 7523 8000
Retail Charity Bonds PLC / Allia

Claire Thwaites

Phil Caroe

Tel: +44 (0)1223 781305

 

 


CAF

 

About CAF

Charities Aid Foundation is one of the largest charitable foundations in Europe and is among the largest providers of philanthropic products and services to charities, donors, and companies worldwide.

CAF draws on a 90 year track record and serves individual charity donors, businesses and charities, helping them give to the causes they care about and providing financial services tailored to the charity sector.

CAF works with 250,000 donors, 3,000 companies – including 66% of the FTSE 100 – and 50,000 charities.

CAF channelled £478 million to charities worldwide in 2014/15 and provides a wide range of services to charities, donors and companies in the UK and worldwide.

CAF Charity Accounts and CAF Charitable Trusts allow people to make donations to charitable organisations in the UK and worldwide.

CAF Give As You Earn (GAYE) is the most popular payroll-giving scheme in the UK, helping nearly 2,700 companies and 200,000 staff to give over £70 million to charity each year.

CAF Company Accounts enable companies to give tax effectively and to donate safely to charitable organisations around the world.

CAF Donate is an online donation processing platform giving charities the tools to fundraise through the web, mobile devices and Facebook and process donations received by post and phone.

  • CAF Bank, a wholly owned subsidiary of CAF, provides banking services to over 17,400 charities and not-for-profit organisations
  • CAF’s Global Alliance includes organisations in America, Australia, Canada, Brazil, Russia, India, South Africa and Bulgaria working to strengthen civil society by promoting philanthropy, working with donors to encourage giving, and offering services to facilitate giving.

 

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About Retail Charity Bonds

Retail Charity Bonds is a platform that issues retail eligible bonds for UK charities. It was created by Allia, the UK charity and social investment specialist, and established in association with Canaccord Genuity.

Retail Charity Bonds PLC is a public limited company; it was established as a special purpose issuing vehicle but is not itself a charity

Other charities to have successfully raised finance through Retail Charity Bonds include Golden Lane Housing, the housing arm of Mencap, and Hightown Housing Association.

For more information please see www.allia.org.uk