Charity bond issue raises £33m in less than a week

Greensleeves Care will use the funds raised to buy and develop new homes for older people

The older people’s charity Greensleeves Care has closed a bond issue that raised £33m in less than a week. 

The charity will use the funds raised through the Greensleeves Care bond to buy and develop new homes for older people.

The issue has become the largest retail charity bond, which allows investors with spare capital to invest in social projects for a set period, with the money returned to them at the end of the bond's lifespan.

Retail charity bonds are listed on the London Stock Exchange and can be bought and sold at any time. All are administered by the social finance charity Allia

To date, £91m, including the £33m for Greensleeves Care, has been raised through four retail charity bonds since 2014.

The Greensleeves Care bond will pay an interest rate of 4.25 per cent a year.

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."

Paul Newman, chief executive of Greensleeves Care, said: "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."

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