Charities in bonds boom

chairman John Tattersall said: ‘It is very difficult for charities to access bank finance and people are increasingly keen to invest their money in socially responsible ways. We can plug that gap in the market.’

The Retail Charity Bonds platform will allow charities to borrow money for seven to ten years, with bond buyers receiving annual interest rates of about 3 to 5 per cent. To keep costs down, lawyers, and banks have given their time for free, saving charities some £2million in advisory fees. The bonds will only be issued by charities that own significant assets, such as care homes, supportive housing and specialist health units.

The market will also be overseen by an independent board, including a former director of the European Investment Bank and three former partners of PwC.