This investment has now been redeemed and is no longer part of Big Society Capital's active portfolio.
Scope, the national disability charity, sought to be the first UK charity to use a small exchange listed Charity Bond issue to invest into the expansion of their charity shop network and fundraising capacity. This investment was designed to enable Scope to increase its unrestricted income streams and enable it to provide additional non-statutory services to individuals living with disabilities in the UK.
Through Investing For Good's investment in Scope, the charity has grown the income generated from its fundraising activities significantly, enabling it to reinvest these proceeds into its non-revenue generative activities.
The loan enables Investing For Good to underwrite the issuance of a fixed income bond in order to build the market for further issuance by charities and social enterprises.
Investing For Good arranged the inaugural charity bond issue from Scope in 2012. At the time of issuance however, the Charity Bond market was still developing and there were insufficient investors to close the proposed transaction after an extended fundraising process. The Bond was fully repaid at Maturity in 2015
Big Society Capital’s loan enabled Investing For Good to underwrite the issuance of Scope’s inaugural bond issue, enabling the Charity to raise the funds it required and creating an important milestone in the development of the Charity Bond market in the UK. The majority of the bonds were placed with institutional investors, public foundations, private trusts and individuals who are attracted by the blend of financial and social impact returns.
Our investment into Investing For Good supports our strategic aim to get more scale into the social investment market.
Total investment and type
- Big Society Capital investment: £875,000
- Total Charity Bond size: £2,000,000
- Co-investors: Rathbones Ethical Bond Fund, Esmée Fairbairn Foundation, Other UK charity funds and private clients
- Arranger/Manager: Investing for Good