Charities Aid Foundation’s Retail Charity Bond has closed early after raising £20m in one week.
The London Stock Exchange-listed bond was launched last Tuesday via the Retail Charity Bonds Plc platform. The bond was created by Allia, a UK charity and social investment specialist, and established in association with Canaccord Genuity.
The bonds will pay a fixed rate of interest 5 per cent per annum, payable twice yearly on 12 April and 12 October. The first coupon payment will be made on 12 October 2016. Bonds are expected to mature on 12 April 2026 with a final legal maturity on 12 April 2028.
Funds raised will be loaned, via a loan agreement, to Charities Aid Foundation.
CAF said the offer period for the bond closed on 29 March due to strong demand, having been expected to close at noon on 6 April.
John Low, chief executive of CAF, said the organisation is delighted at the reception to the bond.
“The proceeds of the bond will be used to further our work, enhancing CAF's services for donors and the thousands of charities we work with."
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