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Charities Aid Foundation Retail Charity Bond 5% due 2026

March 22, 2016

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

Retail Charity Bonds PLC today announces the launch of the Charities Aid Foundation Retail Charity Bond offering 5% due 2026.

This is the third bond to be issued through the Retail Charity Bonds platform, which was created as an issuing vehicle to enable UK charities to raise medium term debt finance through bonds issued to retail and wholesale investors.

The Bonds will be issued by Retail Charity Bonds PLC and the funds raised will be loaned, via a loan agreement, to Charities Aid Foundation (CAF), one of the largest providers of philanthropic services to charities and donors worldwide.

The Bonds are available to wholesale and retail investors and will pay a fixed rate of interest 5% per annum, payable twice yearly on 12 April and 12 October of each year with the first coupon payment being made on 12 October 2016. The Bonds are expected to mature on 12 April 2026 with a final legal maturity on 12 April 2028.

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

Canaccord Genuity Ltd is acting as 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 12 noon on 6 April. 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.

CAF helps people and companies support the causes they care about and provides financial services for the charity sector. It provides a range of services for individual and company donors, including charity accounts, charitable trusts, and legacy services, company accounts and payroll giving. It also provides fundraising support services for charities, social investment and financial services for the not-for-profit sector, including investments and a range of banking and loans through CAF Bank.

John Low, Chief Executive of CAF, said:

“CAF has a 90 year record supporting civil society by helping people to support charities safely and effectively and helping charities make the most efficient use of their money. The funds raised from this Retail Charity Bond will enable us to further our work in a variety of ways, including expanding services for donors and for charities through CAF Bank.”

Tim Jones, Chief Executive of Allia, added:

“This third Retail Charity Bond issue demonstrates the platform’s track record of providing a new source of unsecured loan finance for charities and enabling investors to make positive social impact. We created Retail Charity Bonds to help charities deliver their social mission, and this bond for CAF will result in widespread benefit across the charity sector.”

Adrian Bell, Head of Debt Markets UK, Canaccord Genuity, said:

“CAF is one of the UK’s largest charities and demonstrates the quality of established organisations with charitable status that Retail Charity Bonds is enabling to access medium term finance and further their charitable objectives. Investors seeking social investment opportunities are able to benefit from a transparent and liquid market that offers a financial return and creates tangible social benefit.”

For further information, please see CAF’s website: www.cafonline.org

For enquiries please contact:

CAF

Ben Russell
Simon Ward

Tel: +44 (0)3000 123286
Bell Pottinger

Victoria Geoghegan
Elizabeth Snow

Tel: +44 (0)20 3772 2582
Canaccord Genuity

Adrian Bell
Henrietta Podd

Tel: +44 (0)20 7523 8000

About CAF

Charities Aid Foundation is one of the largest charitable foundations in Europe and is among the largest providers of philanthropic products and services to charities, donors, and companies worldwide.

CAF draws on a 90 year track record and serves individual charity donors, businesses and charities, helping them give to the causes they care about and providing financial services tailored to the charity sector.

CAF works with 250,000 donors, 3,000 companies – including 66% of the FTSE 100 – and 50,000 charities.

CAF channelled £478 million to charities worldwide in 2014/15 and provides a wide range of services to charities, donors and companies in the UK and worldwide.

CAF Charity Accounts and CAF Charitable Trusts allow people to make donations to charitable organisations in the UK and worldwide.

CAF Give As You Earn (GAYE) is the most popular payroll-giving scheme in the UK, helping nearly 2,700 companies and 200,000 staff to give over £70 million to charity each year.

CAF Company Accounts enable companies to give tax effectively and to donate safely to charitable organisations around the world.

CAF Donate is an online donation processing platform giving charities the tools to fundraise through the web, mobile devices and Facebook and process donations received by post and phone.

  • CAF Bank, a wholly owned subsidiary of CAF, provides banking services to over 17,400 charities and not-for-profit organisations
  • CAF’s Global Alliance includes organisations in America, Australia, Canada, Brazil, Russia, India, South Africa and Bulgaria working to strengthen civil society by promoting philanthropy, working with donors to encourage giving, and offering services to facilitate giving.

About Retail Charity Bonds

Retail Charity Bonds is a platform that issues retail eligible bonds for UK charities. It was created by Allia, a UK charity and social investment specialist, and established in association with Canaccord Genuity.

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 platform is also supported by a range of patrons, including: Cabinet Office, Allen & Overy, Bank of New York Mellon, Bell Pottinger, Berwin Leighton Paisner, Big Society Capital, Edentree Investment Management, Linklaters, London Stock Exchange, Prudential Trustee Company Limited, Rathbones and Threadneedle Investments.

Other charities to have successfully raised finance through Retail Charity Bonds include Golden Lane Housing, the housing arm of Mencap, and Hightown Housing Association.

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

About the bonds

  1. The bonds may not be suitable for all investors. Investors should ensure they fully understand the risks and seek independent financial advice.
  2. 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.
  3. In the event that Retail Charity Bonds PLC or Charities Aid Foundation Limited defaults, becomes insolvent or goes out of business, investors may lose some or all of their investment.

IMPORTANT INFORMATION

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 22 March 2016 (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 22 March 2016 (the “Prospectus”. The Prospectus is available at the website of Retail Charity Bonds PLC and Charities Aid Foundation as above and the website of the 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.