Big Society Capital invests £10m to support charity bond growth

25 Jul 2014 News

Big Society Capital has announced a £10m Charity Bond Support Fund to encourage more charities into the bond market.

Nick O'Donohoe, CEO, Big Society Capital

Big Society Capital has announced a £10m Charity Bond Support Fund to encourage more charities into the bond market.

Rathbones Investment Management has been appointed to manage the fund which is designed to increase access to debt financing for charities by offering to purchase one-third of eligible charity bonds which meet the fund’s requirements.

Nick O’Donohoe, chief executive of Big Society Capital, said: “In recent months we have seen a transformation in the charity bond market, with increased interest from both charities and investors, as well as important infrastructure developments.

“Charity bonds have the potential to open up the social investment market, and we hope that this fund will provide the support needed to enable more charities to seek investment in this way.”

Bryn Jones, head of fixed income at Rathbones, said: “We believe that this is fundamentally important in creating a functional market for charity bonds.”