Allia passes £250 million milestone of bonds to support charities and deliver social impact

Finance raised to help tackle global and local issues such as unemployment, social exclusion and affordable housing

More than a quarter of a billion pounds has been raised by independent not-for-profit Allia – with half that sum (£125 million) being issued in 2017 alone.

Since its formation in 1999, Allia’s work on social finance has resulted in over £250 million of bonds being issued to support a range of organisations, from housing associations and care providers to community employment ventures and other charities.

This landmark in social finance includes:

  • Seven Retail Charity Bonds, which have raised more than £157m of the overall total. £99.5m of this was raised in 2017 alone through four bond issues. Allia designed Retail Charity Bonds to make it easier and more affordable for charitable organisations to raise unsecured fixed-rate finance through bonds listed on London Stock Exchange.
  • Nearly £70m of investment from Scottish Government in Allia bonds, which has provided loans to nine housing associations across Scotland. The programme provides unsecured loans for the development of new affordable housing.
  • Fifteen charitable bonds and mini bonds, which have raised over £24m from communities and businesses to generate grants for local charitable projects, such as helping people into work, funding enterprises and community regeneration projects and to invest in local affordable housing.

Allia is an independent not for profit dedicated to amplifying the impact of organisations and individuals that are committed to solving the most pressing global and local challenges – through inspiring workspaces, effective support and innovative social finance.

Tim Jones, chief executive of Allia, says: “We’re very proud of passing this £250 million bond milestone, and all that this finance has helped to achieve. Our bonds have helped provide homes and care for people in need, helped thousands of people into work or out of debt and established enterprises driven by more than profit. Global issues like hunger, joblessness, poverty, climate change and food waste need effective solutions and new thinking. Those who are committed to addressing these challenges need all the support they can get – Allia’s task is to help them amplify their impact.”

 

Retail Charity Bonds
Total raised: £157.5m

  • £58.5m – via two bonds for Hightown Housing Association, which will help the charity provide high-quality homes to homeless people and those who cannot afford to rent or buy at market rates. Both bonds closed early.
  • £33m – raised in one week for Greensleeves Care and is being used to support more elderly people who require residential care.
  • £25m – The fastest-selling Retail Charity Bond yet, the Dolphin Living bond raised £25m in just one day, money that will be used to build and develop more affordable homes for working Londoners.
  • £20m – for Charities Aid Foundation, money which will be used to enhance services for charities and donors. This bond closed early after just four days.
  • £21m – via two bonds for Golden Lane Housing, including the first Retail Charity Bond in 2014. Both bonds will be used to fund the building of more specialist properties for people with learning disabilities.

Scottish Government bonds
Total value: £69.9m
12 bonds providing loans to 9 different housing associations:

  • £15 million, Eildon Housing Association
  • £10.2 million, Kingdom Housing Association
  • £10.1 million, Castle Rock Edinvar
  • £5 million, Elderpark Housing Association
  • £5 million, Dumfries and Galloway Housing Partnership
  • £2.1 million, Orkney Housing Association
  • £2 million, Lochaber Housing Association
  • £1.6 million, Ayrshire Housing
  • £1.3 million, Hjaltland Housing Association

Loans totalling £52.3m. The balance of £17.7m, to be paid in interest on the loans, has provided grants for community projects and the provision of more social housing.

Charitable bonds & mini bonds
Total raised: £24.2 million
Thirteen charitable bonds & two mini bonds have been issued over the years, including:

  • £5.9m – North East Bonds, supporting around 3,000 long-term unemployed and promoting enterprise across the region
  • £2m – Sheffield Bonds, funding local construction schemes and helping people into employment
  • £2.5m – East London Bonds, supporting a number of community regeneration and employment programmes.
  • £360,000 – Welsh Coalfields Bond, promoting regeneration in former coalfields communities

For more information, please contact Laura Nicholls, Marketing Campaigns Manager laura.nicholls@allia.org.uk

Photo credit: Greensleeves Care