Crowe UK advises on £50m charity bond issue

The Manchester office of national audit, tax, advisory and risk firm Crowe UK has advised on one of the largest charity bond issues in the UK in recent years.

The ‘Belong Limited Retail Charity Bond’ raised £50m and was forced to close earlier than anticipated due to high demand from investors.

Michael Jayson, managing partner in the Manchester office of Crowe UK, said: “We were pleased to be able to advise on what is a big step forward for an important charity, who have a major role to play in the future care of the elderly in this region.

“We were selected on the basis of our reputation and experience in the non-profit sector.

“As the leading provider of audit and related services to charities, we understand the issues and challenges these organisations face.”

Belong is a charitable care provider, established in 1991, that creates village communities, enabling older people to live the lives they choose, in particular allowing those living with dementia to retain independence over as many areas of their lives as possible.

The charity opened its first village in Macclesfield in 2007 and aims to achieve the best outcomes for the rapidly growing number of people in the UK living with dementia.

The Bond, which was offered by Retail Charity Bond plc, was launched in May. The proceeds will be used to develop additional Belong villages and support its charitable objectives.

Belong currently operates seven villages, with the latest having opened in Newcastle-under-Lyme in April 2018. Two more sites are in development at Birkdale and Chester.

The Bond is the eighth and one of the largest to be issued through Allia’s Retail Charity Bonds platform since it was launched in 2014, taking the total raised to date to £192.5m.

The lead manager for the bond issue was London-based stockbroker Peel Hunt LLP.

The Belong Limited Retail Charity Bond will pay a fixed rate of 4.5% each year until June 2026.