The housing arm of the learning disability charity, Golden Lane Housing, plans to use the money raised to build 30 homes for 100 people with learning difficulties
The bond is the first to be launched through the Retail Charity Bonds platform which has been created to enable charities to raise medium-term debt through bond issues. Bonds are a type of IOU that sees investors lend money to a company or charity in exchange for a twice annual return, known as a coupon, and the return of their original investment after a set period.
The Bonds will pay a fixed rate of interest of 4.375% per annum, payable twice yearly on 29 January and 29 July of each year with the first coupon payment being made on 29 January 2015. The Bonds are expected to mature on 29 July 2021 with a final legal maturity on 29 July 2023.
One of the biggest challenges facing people with a learning disability in the UK is lack of access to suitable supported accommodation. Due to the chronic housing shortage in the UK, a significant number of people with a learning disability live in unsuitable residential institutions or with elderly parents and carers, and as a result face an uncertain future. Local authority accommodation is in short supply, and with limited choice available, individuals often have to move into accommodation far away from friends and family.
Alastair Graham, Director of Golden Lane Housing, commented:
“We are delighted to be the first bond to be issued via the newly created Retail Charity Bonds platform. The Bond will enable Golden Lane Housing to invest in much-needed housing for the people with a learning disability that are currently living in housing that does not meet their needs, in the wake of a nationwide housing shortage. The houses and bungalows purchased from the proceeds of the Bond will provide a positive and lasting legacy for people as well as future generations with a learning disability.”