Big Society Capital has made its largest ever single investment – up to £14.5 million of ordinary shares in Charity Bank in three successive tranches between 2014 and 2016. The first tranche of £4.5 million has been invested following receipt of all requisite regulatory and shareholder approvals.
The Big Society Capital investment represents a significant step towards Charity Bank’s goal to increase the amount it lends to charities from its current level of around £55 million to around £250 million by December 2018.
Charity Bank, which seeks deposits from socially conscious individuals and lends solely to charities, social enterprises and other social sector organizations, took the decision in 2013 to grow substantially because of the unmet borrowing needs in the social sector.
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This news comes less than two weeks after the announcement of a new social investment tax relief, to be set at a 30 per cent rate.