Scope and Charity Bank work on £20m bond issue

Banks says potential investors are mainly charitable foundations

Geoff Burnand, chief investment officer of Charity Bank
Geoff Burnand, chief investment officer of Charity Bank

The disability charity Scope is working with Charity Bank on a £20m bond issue, Third Sector has learned.

The social lender announced at the launch of the government’s social investment strategy on Monday that it was working on a £20m bond project with an unnamed disability charity.

Geoff Burnand, chief investment officer of Charity Bank, declined to comment on the precise details of the arrangement but confirmed that the programme had already secured a number of potential investments, largely from charitable foundations.

He said his organisation was planning to work with other charities wanting to raise capital through similar bond programmes.

The bonds would operate in a similar way to those issued by commercial organisations, he said, and would be tradeable on an exchange to increase liquidity.

Scope declined to comment.

Several other charity bond issues have successfully raised money for charities, including some issued by the specialist third sector bond company Allia and about £600m of bonds issued in two tranches by the Wellcome Trust.

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