BLP advises on the launch of £50m Greensleeves Homes Trust Retail Charity Bond
International law firm Berwin Leighton Paisner (BLP) has advised Greensleeves Homes Trust on the successful launch of the £50m Greensleeves Homes Trust Retail Charity Bond offering, the fourth Retail Charity Bond to be launched by Allia’s established retail charity bond platform.
Allia’s retail charity bond platform saw the Bonds issued by Retail Charity Bonds Plc, a special purpose issuing vehicle that connects charitable organisations seeking affordable access to unsecured loan finance with investors looking for fixed income bonds listed on the London Stock Exchange. The £33m Bond proceeds were subsequently on-lent to Greensleeves Homes Trust. The finance from the Bonds will enable Greensleeves Homes Trust to increase the number of residents it supports through acquiring and developing new care homes, as well as refinancing existing debt. With a total of £50m of Bonds created, there is also the option to raise up to a further £17m by selling more of the Bonds in the future.
The Bond will pay an interest rate of 4.25% a year for a term of 9 years and is the largest Retail Charity Bond offering to date. Greensleeves Homes Trust is the first charitable care home provider to raise finance through this type of listed bond issue and the Bonds saw strong demand from a wide range of institutional and individual investors.
Prashanth Satyadeva, Head of Structured Debt and Capital Markets at BLP, said: “It has been pleasing to see strong interest in the issuance from individual and institutional investors, and as such the market is seeing more charities and public entities using bonds as a legitimate source of fundraising. It has been rewarding to work on this issuance where the funds raised will go towards noble causes.”
The BLP team included Prashanth Satyadeva, Partner, Head of Structured Debt and Capital Markets, Neasa Coen, Associate Director, Charities, and Regina Chan, Junior Associate, Structured Debt and Capital Markets.