Retail Charity Bonds PLC - Dolphin Square Charitable Foundation

RNS issued this afternoon:

Retail Charity Bonds PLC today announces a roadshow together with The Dolphin Square Charitable Foundation to meet with fixed income investors.....A sterling bond will follow, subject to market conditions.


  • Retail Charity Bonds PLC today announces the launch of The Dolphin Square Charitable Foundation Retail Charity Bond offering 4.25% due 6 July 2026 ........The Bonds are available to wholesale and retail investors and will pay a fixed rate of interest at 4.25% per annum until 6 July 2026, payable twice yearly on 6 January and 6 July of each year with the first coupon payment being made on 6 January 2018. The Bonds are expected to mature on 6 July 2026

    Closes at noon on 30 June.
  • There is zero chance of me getting involved with that palty coupon and long duration.
  • Looks to be very similar to the recently issued Greensleeves Homes Trust bond, now trading on ORB at a (small) premium.

    Nine year term and 4.25% interest rate are virtually identical. Asset backing looks substantial and whilst there is no formal security offered, there is a similar covenant whereby asset cover will be maintained at 1.3x unencumbered tangible fixed assets. Accounts to March 2016 show a secured £53.5m 30 year facility was obtained in that year from Canada Life at a the fixed rate of 3.73%, providing some context for the retail offer at 4.25%.

    Income generated from the growing portfolio appears to be sufficient to cover ongoing costs. Presumably new initiatives such as the Westminster Home Ownership Accelerator will be part funded by the City of Westminster, should this be required?

    I see no indication of the amount it is intended to raise via this bond. Can anyone provide some insight?

  • After the recent tower block fire tragedy and no doubt substantial costs i'm just wondering about the social housing scene
  • The issuer announced the early closure of the offer period, which will close at 3:15pm (London time) on 21 June 2017, earlier than the originally scheduled 12 noon on 30 June 2017.
  • Wow, that was quick. If there's so much interest in this one, why is the Greensleeves price so low?
  • Wow, just seen this as notified by L.S.E. Can only imagine that despite the paltry coupon and fairly long life to maturity certain people/institutions quite fancied the issue and the quality of the security along with the social responsibility feature of the offering. Looks like a reasonable premium-any bets ?
  • Must be institutions who bought this with all the isa money they're holding. Small private investors aren't getting a look in however with greensleeves and places for people available it's not the end of the world. I was unsure over this and won't loose any sleep over it
  • 4.25% for 9 years, and its gobbled up. Has the world gone mad?
  • Sub-investment grade risk/reward is indeed absurd. Blame it on Central Bank QE, resulting in desperate grab for yield. Corporate treasurers and their fellow directors are laughing all the way to the bank, whilst for investors it will end up in tears.
  • See they're trading under provisional terms at 101.70.
  • For what its worth, an Oliver Butt review of the bond has just appeared in today's edition of MoneyWeek. Better late than never, I guess!?
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