Belong raises £50m through Retail Charity Bond
An investment bond launched on behalf of care village provider Belong has raised £50m and closed early due to high demand from investors.
The bond, which was offered by Retail Charity Bonds plc, was launched on 23 May and closed early on 31 May. The proceeds will be used to further Belong’s charitable objectives as well as to develop additional Belong villages. It offered an interest rate of 4.5% a year for a term of eight years.
Within eight days the offer was oversubscribed and orders from investors had to be reduced or turned away. Belong will borrow £35m initially when the bonds are issued on 20 June, but a further £15m of ‘retained bonds’ will be created which can be sold and the extra money loaned to Belong at a later date.
The bond is the eighth and one of the largest to be issued through Allia’s Retail Charity Bonds platform since it was launched in 2014, taking the total raised through the platform to date to £192.5m.
Belong currently operates seven villages, with the seventh having been opened in Newcastle-under-Lyme in 9 April, providing a home for more than 530 residents in the North West of England. Two more sites in Chester and Birkdale have been acquired, with planning permissions already secured, and development is expected to start on these in 2018.