5% Retail Charity Bond Closes a Week Early

Mar


2016

5% Retail Charity Bond Closes a Week Early

Retail Charity Bonds PLC announces the early closure of the Charities Aid Foundation Retail Charity Bond offering 5% due 2026

 

Investors starved of income have flocked to invest in the latest Retail Charity Bond causing the issuer to close its books a week earlier than the intended deadline.

This was the third bond issued through the Retail Charity Bonds platform, which was created as an issuing vehicle to enable UK charities to raise medium term debt finance through bonds issued to retail and wholesale investors.

The Bonds were issued by Retail Charity Bonds PLC and the funds raised will be loaned, via a loan agreement, to Charities Aid Foundation (CAF), one of the largest providers of philanthropic services to charities and donors worldwide.

The bonds were available to wholesale and retail investors and will pay a fixed rate of interest 5% per annum, payable twice yearly on 12th April and 12th October of each year with the first coupon payment being made on 12th October 2016. The Bonds are expected to mature on 12th April 2026 with a final legal maturity on 12th April 2028.

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

The offer period was expected to close at 12 noon on 6 April, but on Tuesday 29th March it was announced that the issue had been closed because of high demand.

The When Issue Dealing (WID) date will be announced soon; check DIY Investor for future retail bond issues.

 

Details of the Issue

 

 

 





One response to “5% Retail Charity Bond Closes a Week Early”

  1. DIY Investor says:

    The fact that the issue closed only half way through the planned offer period clearly shows the demand there is for income yielding investments.

    We bought some for my Mum – 5% p.a. sheltered in an ISA for ten years makes an awful lot more sense than some of the other so called ‘investment bonds’ she has been sold in the past.

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