15 March 2017
Greensleeves Care raise £33million through Allia’s Retail Charity Bond platform
First retail bond to be issued for the care sector
For immediate release
A Retail Charity Bond for Greensleeves Care has closed after less than a week, having raised £33 million. The Bond, which pays an interest rate of 4.25% a year for a term of 9 years, saw strong demand from a wide range of institutional, ethical and individual investors.
The Bond will be issued through Allia’s Retail Charity Bond platform. Allia, a charity and specialist in social investment, launched the platform in 2014 to provide charitable borrowers with affordable access to unsecured loan finance through the mainstream bond market. The bonds are listed on London Stock Exchange, and investors are able to buy or sell their bonds at any time on the Exchange’s Order book for Retail Bonds. This latest bond is the largest Retail Charity Bond and the lowest interest rate to date. It brings the total raised through the platform to £91million, following previous successful issues for Golden Lane Housing (£11m), Hightown Housing Association (£27m) and Charities Aid Foundation (£20m).
Greensleeves Care is the first charitable care home provider to raise finance through this type of listed bond issue, which can be sold to individuals as well as institutional investors. Unlike some forms of funding, the bond finance is not secured against assets and no capital repayments are required until the end of the bond term. Following the success of this bond, Allia expects more charitable care home providers to look at raising funds in this way.
Greensleeves Care provides care and accommodation for the elderly, primarily through residential, dementia and nursing care services. As a charity, it is driven by its social mission and reinvests its profits back into its operations. The charity currently supports up to 789 residents across 20 residential, dementia and nursing homes located across England, setting and maintaining the highest standards of good practice within an environment that encourages residents to thrive as individuals.
The finance from the bond will enable Greensleeves Care to increase the number of residents it supports through buying and developing new homes, as well as going to pay off all existing debt. With a total of £50 million of bonds created, there is also the option to raise up to a further £17 million by selling more of the bonds in the future.
The lead manager for the bond issue was Peel Hunt LLP as part of their debt capital markets collaboration with JC Rathbone Associates.
Tim Jones, Chief Executive of Allia, said:
“The success of this latest Retail Charity Bond reinforces the strength of demand for impact investment opportunities through mainstream financial products. Allia is very pleased to help Greensleeves Care increase the number of older people it cares for and to have proven the viability of this funding route for other charities in the care sector.”
Henrietta Podd, Director, Peel Hunt, said:
“We are delighted that Greensleeves have raised this new funding at an attractive rate of interest. This is now the fourth Retail Charity Bond to be successfully issued and we have been pleased to see an even wider range of institutions and individuals investing in this latest Bond.”
Paul Newman, Chief Executive of Greensleeves Care, added:
“ We are delighted that we have been part of the largest ever Retail Charity Bond issue. The money will be put to immediate use to buy and develop new homes and sites as we invest in our portfolio and our ability to increase the number of older people who benefit from our award-winning care.”
For more information
Allia: Claire Thwaites : 07740 406365 DD: 01223 781 318
Allia is a charitable organisation started in 1999 to create social impact through enterprise. It does this by providing access to finance, workspace and practical support to businesses and charities that want to make a positive impact on people, planet and place and by stimulating new ideas and collaborations among organisations that aim to address social challenges. Allia created the Retail Charity Bonds platform in 2014 to provide charitable borrowers with affordable access to unsecured loan finance through the mainstream bond market
For more information visit www.allia.org.uk .
About Greensleeves Care
Greensleeves Homes Trust, operating as Greensleeves Care, is a registered charity in England and Wales, offering care services across the UK. Operating independently since 1997, Greensleeves Homes Trust emerged from the Women’s Royal Voluntary Service (WRVS).
Greensleeves Care is a not-for-profit organisation that operates care homes across the UK. The organisation has grown to support 789 residents offering residential, dementia, nursing, respite and end of life care. Greensleeves Care provides first-class quality care, adhering to the values of respect, openness and responsibility, with a dedicated and highly skilled staff and management team.
With 20 care homes, including two nursing homes across the Midlands, South and East of England, each home is run by Care Quality Commission (CQC) registered managers.
Dedicated and highly skilled staff are committed to providing residential, dementia, and nursing care, comfort and security to all residents and their families.
Greensleeves Care has a sustainable business model that delivers growth and social value resulting in award-winning care. Greensleeves Care has a balanced approach to growing its portfolio, based on a mixture of acquisitions, redeveloping the existing estate and managing the development of new homes to ensure operational efficiency.
Led by an experienced management team with significant sector experience, Greensleeves Care is committed to its long-term strategy of delivering quality care and nursing services to an increased number of older people.
About Retail Charity Bonds
Retail Charity Bonds is a platform that issues retail eligible bonds for UK charities. It was created by Allia, a UK charity and social investment specialist.
Retail Charity Bonds PLC is a public limited company; it was established as a special purpose issuing vehicle but is not itself a charity. It is governed by an independent and experienced board of directors from the financial and charity sectors who are acting on a pro-bono basis.
The platform is also supported by a range of patrons, including: Peel Hunt, Canaccord Genuity, Cabinet Office, Allen & Overy, Bank of New York Mellon, Bell Pottinger, Berwin Leighton Paisner, Big Society Capital, Edentree Investment Management, Linklaters, London Stock Exchange, Prudential Trustee Company Limited, Rathbones and Threadneedle Investments.
Other charities to have successfully raised finance through Retail Charity Bonds include Golden Lane Housing, the housing arm of Mencap, Hightown Housing Association and Charities Aid Foundation.
About Peel Hunt
Peel Hunt is an independent corporate broking/advisory house that has highly rated, sector-aligned Research, Sales and Corporate teams, with a current retained corporate client list of over 115 listed companies and a trading platform that makes markets in c.3,500 equity and fixed income products.
Peel Hunt ranked 1st with the UK’s largest Fund Managers and received more ‘Top 3’ sector teams than any other broker in the 2016 Thomson Reuters Extel Survey of UK Small & Mid Cap Brokerage Firms. At the influential Starmine Awards, the firm’s research team ascended into the top three for the first time, coming in second between Goldman Sachs (1st) and Bank of America (3rd) Thomson Reuters Analyst Awards.
Peel Hunt’s Debt Capital Markets is part of a collaboration with debt advisory, risk and hedging specialists JC Rathbone Associates.