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Retail Charity Bonds PLC  -     

Hightown Housing Association Retail Charity Bond

Released 12:07 10-Oct-2017

RNS Number : 1764T
Retail Charity Bonds PLC
10 October 2017
 

The information contained herein may only be released, published or distributed in the United Kingdom, the Isle of Man, Jersey and the Bailiwick of Guernsey in accordance with applicable regulatory requirements. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, the Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this document. The bonds referred to below may only be sold in Jersey in compliance with the provisions of the Control of Borrowing (Jersey) Order 1958 and the Financial Services (Jersey) Law 1998, as amended.

 

LAUNCH OF RETAIL CHARITY BOND

 

HIGHTOWN HOUSING ASSOCIATION RETAIL CHARITY BOND 4% DUE 2027

 

Retail Charity Bonds PLC today announces the launch of the Hightown Housing Association Retail Charity Bond offering 4% due 2027 (the "Bonds").

 

Hightown Housing Association Limited (the "Charity") manages over 5,300 properties in Hertfordshire, Bedfordshire, Berkshire and Buckinghamshire. Around 3,250 of these are affordable homes for rent, 541 are supported housing units and 659 are homes for shared ownership. It is an active developer of new affordable housing at a rate of approximately 350 new homes a year.

The Charity also provides housing and support to people with a variety of needs, including people with learning disabilities and mental health problems, young people and homeless people, providing over 30,000 hours of support each week.

 

The Bonds will be issued by Retail Charity Bonds PLC (the "Issuer"), a special purpose issuing vehicle created and managed by Allia, an independent not for profit with a social mission, dedicated to helping impact organisations and initiatives to grow. The vehicle connects charitable organisations seeking unsecured loan finance with investors looking for fixed income bonds listed on the London Stock Exchange. The funds raised will be loaned, via a loan agreement, to Hightown Housing Association Limited.

 

The Bonds are available to wholesale and retail investors and will pay a fixed rate of interest at 4% per annum until 2027, payable twice yearly on 30 April and 31 October of each year with the first coupon payment being made on 30 April 2018. The Bonds are expected to mature on 31 October 2027 with a final legal maturity on 31 October 2029.

 

At any time during the life of the Bonds, investors are permitted to sell the Bonds (within market hours and in normal market conditions) on the open market through their stockbroker.

 

Authorised Offerors

 

·      AJ Bell Securities Limited

·      Equiniti Financial Services Limited

·      Redmayne-Bentley LLP

·      iDealing.com Limited

 

Peel Hunt is acting as Lead Manager (the "Lead Manager") on the issue.

 

The Bonds have a minimum initial subscription amount of £500 and are available in multiples of £100 thereafter. The offer period is expected to close at 12pm on 24 October 2017. The Issuer retains the right to close the offer early, in conjunction with the Lead Manager.

 

The Bonds are expected to be listed on the UK Listing Authority's Official List and admitted to trading on the London Stock Exchange's regulated market and through the electronic Order book for Retail Bonds.

 

This is the sixth Retail Charity Bond to be launched by the Issuer, and the second time that the Issuer has launched a bond for Hightown Housing Association Limited (formerly Hightown Praetorian & Churches Housing Association Limited). The first bond raised £27 million for the Charity in 2015. Other charities to have successfully raised funds through a Retail Charity Bond include Golden Lane Housing (the housing arm of Mencap), Charities Aid Foundation, Greensleeves Homes Trust and The Dolphin Square Charitable Foundation.

 

Commenting on the launch, David Bogle, Chief Executive of Hightown, said:

"This bond offers an ethical investment, a chance for everyone to invest in our mission to deliver much-needed affordable homes for the region."

 

Phil Caroe, Director of Social Finance, Allia, said:

"It's been a pleasure to watch Hightown's growth after raising £27 million through a Retail Charity Bond issue in 2015. We're therefore delighted to launch this second bond for Hightown which will enable them to provide more affordable homes and more support for people who need their care."

 

John Tattersall, chair of Retail Charity Bonds plc, said:

"This sixth issue shows that the uniformity of our structuring and on-lending process is proving to be as efficient as I and my fellow volunteer directors had anticipated."

 

 

For further information about Hightown Housing Association Limited, please go to http://www.hightownha.org.uk

 

-ENDS-

 

For enquiries, please contact:

 

Hightown Housing Association Limited

Jessica Stewart
(Filigree Communications)

 

Tel: +44 (0)7788 758517

Peel Hunt LLP

Henrietta Podd

 

Tel: +44 (0)20 3597 8676

Retail Charity Bonds PLC / Allia

Phil Caroe

Tel: +44 (0)1223 781303

 

 

About Hightown Housing Association Limited

 

Hightown Housing Association Limited is a charitable housing association operating in Hertfordshire, Buckinghamshire, Berkshire and Bedfordshire, providing a wide range of housing and support services for families and single people including people with special needs.

 

The Charity currently manages over 5,300 homes and employs about 670 full time equivalent staff. As at 31 March 2017, the Charity had an annual turnover of £63 million and total fixed assets of £531 million.

 

The Charity aims to be an excellent provider and manager of housing and support services and to develop high quality new homes to meet the urgent need for additional affordable housing.

 

The Charity has three main functional activities:

·      It is a social landlord managing over 5,300 units of housing of which 3,254 are affordable homes for rent, 541 are supported housing units, 659 are homes for shared ownership, 717 are leasehold homes, 195 are managed for other entities, eight are nursing bed spaces and 12 are held for development;

·      It is a provider of housing and support to people with support needs including people with learning disabilities and mental health problems, young people and homeless people (supporting approximately 820 service users at any one time and providing over 30,000 hours of support a week); and

·      It is an active developer of new affordable housing at a rate of approximately 350 new homes a year, although this figure may be subject to significant fluctuation upwards or downwards depending on timings and the usual risks associated with development.  At 31 March 2017 it had 906 units under development.

 

For more information visit www.hightownha.org.uk

 

About Retail Charity Bonds and Allia

 

Retail Charity Bonds is a platform that issues retail eligible bonds for UK charities. It was created by Allia, a social investment specialist that has been creating bonds for social benefit since its launch in 1999.

 

The Issuer, Retail Charity Bonds PLC, is a public limited company; it was established as a special purpose issuing vehicle but is not itself a charity. It is governed by an independent and experienced board of directors from the financial and charity sectors who are acting on a pro-bono basis. The administration of the Issuer and the origination of charitable borrowers is carried out by Allia Impact Finance Ltd, a subsidiary of Allia Ltd.

 

Other charities to have successfully raised finance through Retail Charity Bonds include Golden Lane Housing (the housing arm of Mencap), Charities Aid Foundation, Greensleeves Homes Trust and The Dolphin Square Charitable Foundation.

 

For more information please see www.retailcharitybonds.co.uk

 

About Peel Hunt

 

Peel Hunt is an independent corporate broking/advisory house that has highly rated, sector-aligned Research, Sales and Corporate teams, with a current retained corporate client list of over 115 listed companies and a trading platform that makes markets in c.3,500 equity and fixed income products.

Peel Hunt ranked 1st with the UK's largest Fund Managers and received more 'Top 3' sector teams than any other broker in the 2016 Thomson Reuters Extel Survey of UK Small & Mid Cap Brokerage Firms.  At the influential Starmine Awards, the firm's research team ascended into the top three for the first time, coming in second between Goldman Sachs (1st) and Bank of America (3rd) Thomson Reuters Analyst Awards.

 

Peel Hunt's Debt Capital Markets is part of a collaboration with debt advisory, risk and hedging specialists JC Rathbone Associates.

 

For more information please see http://www.peelhunt.com

 

About the Bonds

 

·      The Bonds may not be suitable for all investors. Investors should ensure they fully understand the risks and seek independent financial advice.

·      Investors should note that the market price of the Bonds can rise and fall during the life of the investment and the price of the Bonds could fall below the issue price of £100.

·      In the event that Retail Charity Bonds PLC or Hightown Housing Association Limited, becomes insolvent or goes out of business, investors may lose some or all of their investment.

 

This announcement is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC, as amended, and/or Part VI of the Financial Services and Markets Act 2000 (the "FSMA"). A prospectus dated 10 October 2017 (the "Prospectus") has been prepared and made available to the public as required by Part VI of the FSMA. Investors should not subscribe for any bonds referred to in this announcement except on the basis of information in the Prospectus. Full information on Retail Charity Bonds PLC and the offer of the bonds is only available on the basis of the combination of the Prospectus and this announcement which have been published by Retail Charity Bonds PLC on the Regulatory News Service operated by the London Stock Exchange.

 

The restriction on financial promotions contained in section 21(1) of the Financial Services and Markets Act 2000 does not apply to this announcement by virtue of article 70(1A) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended.

 

The offering and the distribution of this announcement and other information in connection with the offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

 

This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any Bonds. Any purchase of Bonds pursuant to the offer should only be made on the basis of the information contained in the prospectus dated 10 October 2017 (the "Prospectus". The Prospectus is available on the website of Retail Charity Bonds PLC and Hightown Housing Association Limited, as above, and the website of London Stock Exchange plc

(www.londonstockexchange.com/newissues).

 

The Bonds have not been and will not be registered under the United States Securities Act of 1933 (as amended) (the "Securities Act") and, subject to certain exceptions, may not be offered or sold within the United States or to United States persons. The Bonds are being offered and sold outside of the United States in reliance on Regulation S of the Securities Act.

 

 

 


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Hightown Housing Association Retail Charity Bond - RNS