Charitable housing provider launches bond to raise £10m

Hightown Praetorian & Churches Housing Association's bond will cost a minimum of £500 and has been issued through the Retail Charity Bonds platform, created by the charity Allia

Stainton Court: an HP&CHA property
Stainton Court: an HP&CHA property

Hightown Praetorian & Churches Housing Association, a charitable housing provider that builds and manages properties in Hertfordshire, Buckinghamshire and Bedfordshire, has launched a retail bond to raise at least £10m to pay for new homes.

The bonds will be available for a minimum subscription of £500 and will pay investors a fixed rate of interest of 4.4 per cent a year, payable twice yearly on 30 October and 30 April. The offer period is expected to close at 12 noon on 28 April this year and the bonds are expected to mature on 30 April 2025.

The bond has been issued through the Retail Charity Bonds platform. The platform has been created by Allia, a charity that specialises in developing social investment opportunities, in association with the financial services firm Canaccord Genuity.

A spokeswoman for Allia said it was hoped that the bond would raise at least £10m for the charity’s work.

Investors will be permitted to sell the bonds at any time on the open market through stockbrokers. The bonds are expected to be included on the UK Listing Authority's Official List and traded on the London Stock Exchange's Order Book for Retail Bonds, an electronic trading platform for bonds and gilts.

Hightown’s services include providing accommodation for homeless people and supported housing for those with learning difficulties or mental health problems. It also supports young people, women who are fleeing domestic violence and young mothers with babies.

David Bogle, chief executive of Hightown, said: "We aim to help homeless people and people who cannot afford to rent or buy at market rates by developing new high-quality homes. The launch of this bond will help us to fund this vital work. It is good news for Hightown, for investors and, most importantly, for those people who will be housed in the new homes."

Last year, Golden Lane Housing, the housing arm of the learning disability charity Mencap, raised £11m in less than two weeks through a bond issued on the Retail Charity Bonds platform.

Andy Hillier

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