Retail Charity Bonds

A cost effective medium term funding alternative for capital investment.

Allia and its partners are currently in the process of developing a Retail Charity Bond platform due to be launched in the first quarter of 2013.

The Retail Charity Bond platform is designed to raise funds of £3 million or more from private investors on behalf of charities looking to acquire capital assets or finance existing assets more efficiently. The platform is being established to provide a cost-effective way to raise medium-term (5-10 year) funding.

Retail Charity Bonds Plc[1] (the issuing vehicle) will issue bonds to private investors through stockbrokers and wealth managers. Each retail charity bond will issued in small denominations and will be listed on the London Stock Exchange. This will provide a market place for private investors to buy and sell their bonds following the initial issue.

The issuing vehicle will on-lend the funds raised to the charity under a loan agreement. The charity will pay a rate of interest to cover the bond coupon and the management fees of the Retail Charity Bond platform. At the end of the term the Charity repays the loan and the issuing vehicle repays the bond holders.

The platform enables each charity to launch a bond under its own brand using standardised documentation that will be tailored to each charity.[2]

The day to day administration of the issuing vehicle will be undertaken by Allia Ltd under a long term management contract. The issuing vehicle will have its own independent board to approve each bond issue and loan agreement.

The Retail Charity Bond platform is being developed in partnership with Canaccord Genuity, a global full-service investment bank with extensive experience of arranging retail bonds and Allen & Overy providing legal advice and documentation. Trustee services will be provided by Prudential Trustees with Bank of New York Mellon acting as paying agent.

If you would like to know more about this platform, please contact us at Allia who can make initial introductions to Canaccord Genuity Limited.[3] Charities should consider the suitability of this product and if necessary seek independent financial advice.

This is a financial promotion made by Allia Ltd and approved by Canaccord Genuity Limited solely for the purposes of section 21(2)(b) of the FSMA. Canaccord Genuity Limited (No. 01774003) whose registered office is 88 Wood Street, London EC2V 7QR is authorised and regulated by the UK Financial Services Authority (Firm Ref Number 182011) Canaccord Genuity Limited do not provide legal, tax, accounting or investment advice in relation to the bonds and are not responsible for any advice you may receive from any third party.

[1] Retail Charity Bonds Plc is in the process of being established

[2] Each retail charity bond issue will need approval from the UK listing authority

[3] Allia Ltd is not authorised to provide financial advice, but will introduce interested charities to Canaccord Genuity Limited.

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