On 2 June a service to allow charities to issue bonds and list them on the London Stock Exchange was launched by specialist charity bond provider Allia.
The bonds will technically be issued by Retail Charity Bonds, a special purpose vehicle set up by Allia, a charitable community benefit society. It will pass on the income to charities, which will be responsible for meeting all the repayments. …
Up until now, most charity bonds have not been listed on a trading exchange because of the cost involved. This means they are not subject to the same regulation and cannot easily be bought and sold by investors. The new specialist vehicle will make it possible to list because it will trade in much larger volumes and will have lower costs.
On 19 June, a new £60 million grant fund to support charities to get ready for social investment was launched by the UK’s Office for Civil Society. The new grant fund will help charities interested in social investment develop the skills and business plans to take on funding, and will be available over the next decade.
The government has also published a new strategy to support social investment, in which it promises to pilot a guarantee fund to support crowdfunding and to seek state aid approval to allow the sector to access larger amounts of social investment tax relief.