Golden Lane Housing (GLH), a charity that provides supported housing for people with learning disabilities, plans to raise £11m through a bond issue with a 4.375 per cent coupon rate and a maturity date of 2021.
This is the first bond issue to be made through a recently launched platform on the London Stock Exchange to enable charities to raise funds. The bonds will be issued through a special purpose vehicle Retail Charity Bonds, which is governed by an independent board of non-executive directors. The minimum subscription is £500, and the offer period will end on 23 July. Interest will be paid every six months and, as the bonds will be listed on the open market, investors can sell the bonds whenever they wish.
For investors seeking a reasonable yet safe return, the bonds have their attractions. Golden Lane is wholly owned by Royal Mencap Society, and owns, manages and maintains 700 care homes across the UK. The income stream is pretty secure as it comes through government backed rent payments, added to which virtually all housing benefit due to the patients is paid directly to GLH. The charity is currently operating close to capacity, with void rates of less than 5 per cent, and will seek to use the funds to provide more much-needed housing for people with learning disabilities.
