More applications than expected for new bond pilot, CIC Association says

Nearly 50 community interest companies have already expressed interest in the pilot project, according to membership body

John Mulkerrin, co-founder of the association
John Mulkerrin, co-founder of the association

The CIC Association says it has had a far larger response than expected from organisations wanting to take part in a pilot project to launch the first bond for community interest companies.

John Mulkerrin, co-founder of the association, told Third Sector he had already had interest from nearly 50 CICs wanting to raise money through the bond issue. It was first announced last week.

Mulkerrin said he hoped to raise "a seven-figure sum" from the first bond, which will benefit several CICs. He said it was too early to name any of the organisations involved.

The association would look to run more bonds after the pilot project had finished, he said.

The bonds, which will carry an AA credit rating, will pay up to 10 per cent interest over five years. Money raised through the bonds will be lent on to housing associations at a higher rate of interest than that paid by the bond, meaning each CIC should make a profit of between 10 and 18 per cent.

"We’re hoping this will attract empathy investors looking for a balance of financial and social return," said Mulkerrin.

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