Share

Scope closes first tranche of social bond after delay

Scope closes first tranche of social bond after delay
News

Scope closes first tranche of social bond after delay

Finance | Celina Ribeiro | 1 Jun 2012

Scope closed the first tranche of its pioneering £20m social investment bond yesterday, but the product took longer than expected to sell.

The disability charity launched its £20m social investment programme on the Euro MTF Stock Exchange in October last year, with a plan to use the money invested in the programme to fund revenue-generating activities, such as shops and fundraising.

But the first tranche, which raised £2m, has taken longer than expected to sell. When speaking to civilsociety.co.uk earlier this year, the team behind the bond at Scope said they had expected it to close around late March or early April. It has taken exactly eight months for the first round of the bond to close.

Geetha Rabindrakumar (pictured), Scope’s director of finance, said that the delay is a result of the charity needing to set up processes for the inaugural tranche.

“This is a first in terms of this programme and we had some more work to do with the agents who were providing us with back-office functions and in particular Capita, which has supported us in getting a mechanism in place to allow investors who wouldn’t normally invest in the international bond market to invest in us,” she told civilsociety.co.uk this morning.

“The process of setting that up, and the legal agreements, took a bit longer than we expected but having gone through that process means that there’s now an established mechanism in place for other charities to use and follow.”

Rabindrakumar said while there is yet no timescale for the release of future tranches, she “absolutely” expects that they will move faster.

“As the first charity to set up this programme we’ve developed the processes, documentation and agreements from start,” she said. “But having gone through that process once, the framework’s now in place for us to be able to proceed with further tranches more speedily.”

Investors in the bond come in various shapes and sizes, including trusts and foundations, wealth managers, unit funds and private investors. As expected, Esmeé Fairbairn Foundation is an investor in the first tranche, as are Nesta and Rathbones.

Scope chief executive Richard Hawkes said the response to the first-of-its-kind social bond was “unprecedented”.

“It demonstrates that there are investors out there who are looking for products that offer them social returns as well as financial ones,” he said. 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Camelot CEO says deregulation of society lotteries may not increase good cause money

18 Dec 2014

The chief executive of Camelot has said that reducing the regulation around society lotteries may not...

Ukip supporters trust charities less than other voters do, NPC study finds

18 Dec 2014

A survey by Ipsos Mori for NPC about how charities are perceived by people who vote for various political...

Tobin Aldrich leaves Sightsavers to set up consultancy

17 Dec 2014

Former director of global fundraising for Sightsavers, Tobin Aldrich, has announced that he has left the...

PDSA plans to change objects to offer paid for services

19 Dec 2014

The Charity Commission has sided with the People’s Dispensary for Sick Animals on a decision that would...

Charity Commission exercises inquiry powers four times as often as previous year, report shows

19 Dec 2014

The Charity Commission investigated almost 2,000 charities in the year to March 2014 and used statutory...

DWP promises measures to improve charities’ experience of the Work Programme

18 Dec 2014

The Department for Work and Pensions has agreed to introduce measures expected to improve the Work Programme...

CRUK crowdfunding effort flops

15 Dec 2014

Cancer Research UK’s three new crowdfunding campaigns did not manage to raise even 10 per cent of the...

Volunteering platform Do-it relaunches

12 Dec 2014

Online volunteering platform Do-it has been relaunched today by its new owner, the Do-it Trust, with more...

‘The challenge is getting people to use IT systems’

28 Nov 2014

Whatever type of customer-relationship management system charities use, the biggest challenge is convincing...

Join the discussion

 Twitter button

@CSFinance