May 23, 2018 Finance

Belong launch Charity Bond

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LAUNCH OF RETAIL CHARITY BOND

BELONG LIMITED RETAIL CHARITY BOND 4.5% DUE 2026

Retail Charity Bonds PLC has announced the launch of the Belong Limited Retail Charity Bond offering 4.5%, due 2026.

Belong Limited was established in 1991 and its objects are to carry on any charitable purpose for the benefit of the community and, in particular, to provide accommodation, care, support and associated facilities, amenities and services to those who need them by reason of age, illness, disability (including physical, mental and/or learning disability), poverty or social and economic circumstances.

The Charity aims to provide high quality, person-centred care, accommodation and ancillary services to older people. The vision of the Charity is to create village communities enabling older people to live the lives they choose and, in particular, to enable people living with dementia to retain choice and independence over as many areas of their lives as possible. The Charity has won awards for its contribution to the care industry, including several awards at the British Care Awards.

In 2007, the Charity opened its first Belong village in Macclesfield, following years of research and development geared towards achieving the best outcomes for the rapidly growing number of people in the UK living with dementia, which is set to rise to over one million by 2025 and two million by 2051, according to Alzheimer’s Society statistics.

The Charity currently operates seven Belong villages, with the seventh having been opened in Newcastle-under-Lyme on 9 April 2018, providing a home for over 530 residents in the North West of England. Two more sites have been acquired, with planning permissions already secured, and development is expected to start on these in 2018.

The Bonds will be issued by the Issuer, a special purpose issuing vehicle created and managed by Allia, an independent not for profit with a social mission, dedicated to helping impact organisations and initiatives grow. The vehicle connects charitable organisations seeking unsecured loan finance with investors looking for fixed income bonds listed on the London Stock Exchange. The funds raised will be loaned, via a loan agreement, to Belong Limited and will be used to further its charitable objects and to develop further Belong villages.

The Bonds are available to wholesale and retail investors and will pay a fixed rate of interest of 4.5% per annum until 20 June 2026, payable twice yearly on 20 June and 20 December of each year, with the first coupon payment being made on 20 December 2018. The Bonds are expected to mature on 20 June 2026 with a final legal maturity on 20 June 2028.

At any time during the life of the Bonds, investors are permitted to sell the Bonds (within market hours and in normal market conditions) on the open market through their stockbroker.

The “Authorised Offerors” are:
AJ Bell Securities Limited
Equiniti Financial Services Limited
iDealing Limited
Redmayne-Bentley LLP

Peel Hunt is acting as Lead Manager (the “Lead Manager”) on the issue.

The Bonds have a minimum initial subscription amount of £500 and are available in multiples of £100 thereafter.

The offer period is expected to close at 12pm on 13 June 2018. The Issuer retains the right to close the offer early, in conjunction with the Lead Manager.

It is expected that the Bonds will be listed on the Official List of the Financial Conduct Authority and admitted to trading on the London Stock Exchange’s regulated market and through the electronic Order book for Retail Bonds on or around 21 June 2018.

This is the eighth Retail Charity Bond to be launched by the Issuer, following successful previous issues for Golden Lane Housing, Hightown Housing Association, Charities Aid Foundation, Greensleeves Homes Trust and Dolphin Living. In total the bonds have raised more than £150 million since 2014.

Tracey Stakes, CEO of Belong, commented:

“Belong villages were established as an alternative to the conventional care model, and led by an individual’s needs rather than an institution’s requirements. This pioneering approach to later-life care, promoting wellbeing through homely, smaller group living arrangements, coupled with the emphasis placed on integration with the local community, has proved a success. As demand for our offering has grown, we continue to look at ways to expand our portfolio and a successful bond issuance will allow us to develop further villages across the UK.”

Phil Caroe, Director of Social Finance, Allia, said:

“The Retail Charity Bonds platform has a proven track record in helping charitable borrowers to access finance from ethically minded investors in order to grow and deliver greater impact. We are very excited to be working with Belong, a charity which is offering a leading service in the provision of support for older people.”

John Tattersall, Chair of Retail Charity Bonds PLC, added:

“This eighth issue shows that the uniformity of our structuring and on-lending process continues to be as efficient as I and my fellow volunteer directors had anticipated.”

For further information about Belong, please go to: https://www.belong.org.uk/

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