CHICAGO: If your organization is thinking about raising finance through social investment, you may want to consider some recent examples of how this has been done in the voluntary sector. Golden Lane Housing, the housing arm of Mencap, has now raised two bonds through different routes and it is timely to reflect on some of the lessons learned.
GLH owns 700 houses and bungalows, which are let to people with a learning disability.
“But the need is far greater, and if we want to do more we need capital to buy and adapt housing,” said director Alastair Graham.
“In 2013, we issued what, at the time, was the largest charity bond of its type. We raised $10m, which we have invested in buying and adapting houses and bungalows that are now home to 99 tenants.”
“Last year, we were the first charity to raise funds through the new Retail Charity Bonds platform, allowing us to access mainstream investors through a bond listed on the London Stock Exchange. It raised $11m in eight days, with over half of the investment coming from individuals and the rest from institutions. As a result of this we are now busy negotiating the purchase of over 30 more properties, which will create homes for another 100 tenants.”…