The challenge
Raising a charity bond for the first time can be a long and expensive process, while a lack of available data in this relatively new market can make it difficult to attract investors.
Our approach
We developed a fund to drive the development of the charity bond market, providing issuers and investors with the confidence they both need to see sustainable growth. The fund has helped the charity bond market grow from £30 million in 2014 to over £300 million in 2019.
The fund
The Fund supports a range of social enterprises and charities in the UK raise capital via the public bond market.
The Fund has been specifically structured to ensure it supports the development of the charity bond market as it grows and does not embed a reliance upon its support, encouraging and prioritising demand from other social investors. This will help develop a track record of issuances and attract individual and institutional investors in the future.
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Big Society Capital commitment
£30 million
Key information
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Geography
UK wide -
Investment type
Charity bonds -
Fund manager
Rathbones Investment Management -
Investment status
Current -
Investment date
2014 -
Term
Perpetuity
Impact
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Number of bonds invested over life of fund
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Average investment size
Sustainable development goals
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1: No Poverty End poverty in all its forms everywhere -
3: Good Health and Well-being Ensure healthy lives and promote well-being for all at all ages -
4: Quality Education Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all -
7: Affordable and Clean Energy Ensure access to affordable, reliable, sustainable and modern energy for all -
8: Decent Work and Economic Growth Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all -
11: Sustainable Cities and Communities Make cities and human settlements inclusive, safe, resilient and sustainable