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Housing association to launch retail charity bond
A housing association has launched a retail charity bond at a fixed interest rate of 4.4%.
Hightown Praetorian & Churches Housing Association will raise the funds from investors buying shares of a minimum of £500.
The 4,400-home landlord intends to use the cash to build ‘new, high-quality homes’ to help ‘homeless people and people who cannot afford to rent or buy’.
The bond will be issued by Retail Charity Bonds PLC, a platform created by social investment charity Allia in association with investment bank Canaccord Genuity, before being loaned to Hightown.
Investors will receive a fixed rate of 4.4% and the bonds are expected to mature in 2025, with a final legal maturity of 2027.
Investors will be permitted to sell the bonds on the open market. The offer period is open until 27 April with Canaccord Genuity acting as lead manager.
David Bogle, chief executive of Hightown, said: ‘The launch of this bond… is good news for Hightown, for investors and most importantly for those people who will be housed in the new homes.’
Mencap made the first use of Retail Charity Bonds in June last year, raising cash to build 30 new homes for people with learning difficulties through its Golden Lane Housing subsidiary.
