Scope closes first issue of social investment bonds
1 June 2012
- £2 million bonds issued under Scope’s social investment programme
- Investors include wealth managers, unit funds and private investors as well as charitable trusts and foundations
- Reflects growing appetite from investors for social investment products
The first bonds under disability charity Scope’s £20 million social investment programme have been issued following the programme’s listing on the Euro MTF Stock Exchange Luxembourg last year.
Scope became one of the first UK charities to enter the capital markets when it launched its social investment bond programme in 2011, developed in partnership with Investing for Good. It has now closed its first £2 million issue following interest from a broad range of investors attracted by the bonds’ combination of financial returns coupled with social returns delivered through the charity's work with disabled people.
Investors in the bonds include Rathbones, NESTA, Esmée Fairbairn and Panahpur demonstrating an appetite amongst investors to invest in professionally constructed products that support charities and diversify their investment portfolios.
The £2 million issue will be used by Scope to invest in its income generation activities, including fundraising programmes to grow its supporter base and expand its network of charity shops, both of which generate long-term sources of income to support its work with disabled people.
Richard Hawkes, Chief Executive of Scope, said: "The response to the Scope bond programme has been unprecedented and demonstrates that there are investors out there who are looking for products that offer them social returns as well as financial ones. Diversifying our financial support is a key priority for Scope, especially in the current economic climate, and the bonds create an alternative way for people to support our work alongside the philanthropic loans and traditional donations we receive. Proceeds from the first issue will provide us with the capital we need to invest in our income generation activities, giving us the potential to transform the support we are able to offer disabled people and their families in the future."
Geoff Burnand, Chief Executive of Investing for Good, continued: "The response we have had from a wide range of investors who are attracted by the blend of financial and social returns has been exciting and we believe bodes well for the future of the social investment market."
Bryn Jones, Fund Manager at Rathbone Unit Trust Management, one of the investors in the Scope Bond Programme continued: "The Scope Bond Programme will create funds to support disabled people and their families and therefore meets the social well-being and ethical criteria we're looking for through Rathbone Ethical Bond Fund. We look forward to offering our clients interested in social investment new opportunities with Scope."
Disclaimer: This press release does not constitute an offer to sell or the solicitation of an offer to buy the bonds.
Notes to the Editor:
For more information about supporting Scope's work or for general information about the Scope Bond Programme, please contact Tom Hall, Director of Philanthropy and Partnerships at Scope, on 020 7619 7280 or email firstname.lastname@example.org
For media enquiries please contact the Scope press office on 020 7619 7200 or the Social Investment Business press office on 020 7842 7724.
The Scope Bond Programme, launched on 31 October 2011, operates in the same way as similar corporate bond products. Scope has the flexibility to issue sterling bond tranches at varying nominal amounts, maturity dates and coupon rates under the overarching programme.
The Scope Bond Programme is listed on the Euro MTF Market in Luxembourg, a recognised stock exchange that has a strong presence in capital markets and a proven record for supporting social investment. The Bond Programme will be subject to the same regulation and protection offered to corporate bond investors on the Euro MTF and a prospectus for the Bond Programme is available on request from the programme arranger. Scope has partnered Investing for Good, a specialist social finance intermediary to launch the issue of the bonds and whose FSA-authorised affiliate, The Social Investment Market CIC Ltd. is the arranger of the Bond Programme.
Several City partners supported the development of the Scope Bond Programme on a pro bono basis including BNY Mellon, acting as fiscal agent and registrar, Capita providing trustee and custodial services for some investors, and with legal advice provided by Linklaters LLP and Weil.
Scope is a registered UK charity that works with disabled people, of all ages, and their families, across England and Wales. We offer practical, everyday support and deliver campaigns that can change lives. Our vision is a world where disabled people have the same opportunities as everyone else. Together we can create a better society.
2010/11 charity financials include:
Fees-based revenue for provision of disability services: £58m
Voluntary fundraised income £14m
Grants income £5m
Retail income from 250 charity shops £23m
Fixed asset net book value £23m
Net incoming resources £4 million
About Investing for Good
Investing for Good is a specialist social finance intermediary. Its wholly owned subsidiary The Social Investment Market CIC Ltd is FSA regulated to conduct investment business.