- This story has been clarified: see final paragraph
A Glasgow-based community interest company has launched a bond to raise about £2m to build up to 40 affordable new houses and refurbish up to 15 other properties.
The bond has been issued by the Together Group community interest company, which helps offenders and ex-offenders by providing them with work experience and jobs in the construction industry.
The five-year bond has been created with Triodos Bank and will pay investors 4 per cent gross interest a year, which will be paid twice a year in arrears.
The money raised will be used to build up to 40 affordable new homes and complete between 10 and 15 restorations of properties. The building work will be done with the help of 50 ex-offenders and 50 people serving custodial sentences in Glasgow’s Barlinnie prison.
The bond will be on sale between 27 July and 11 September and the minimum investment is £20,000. Together said it would be secured against its assets, including its property portfolio.
Under the CIC’s business model, the properties it completes are sold and the original capital and the profits reinvested to fund further property purchases and to create more jobs.
The Together Group is led by chief executive Barry Mochan, who has worked for the police, in construction and in housing project management.
Mochan said: "Glasgow Together offers a unique social investment opportunity by giving ex-offenders the training, skills and employment they need to help turn their lives around, through a sustainable commercial business model that can pay investors a return on their capital."
- The story originally called the bond a "social impact bond", as it was incorrectly described in the news release from Triodos