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Golden Lane Housing Retail Charity Bond 3.9% due 2027

November 1, 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
GOLDEN LANE HOUSING RETAIL CHARITY BOND 3.9% DUE 2027

Retail Charity Bonds PLC today announces the launch of the Golden Lane Housing Retail Charity Bond offering 3.9% due 2027 (the “Bonds”).

Golden Lane Housing Ltd (the “Charity”) was established by the Royal Mencap Society (“Mencap”) to provide quality homes to people with learning disabilities. Since its inception, the Charity has built a substantial property portfolio: it either owns or leases 798 homes, which provides housing for 1,645 tenants with a learning disability in the UK (31 March 2017). In addition to providing homes, the Charity provides specialist services to its tenants in partnership with other care providers, including Mencap. This includes providing bespoke adaptations to the properties to meet the needs of their tenants.

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 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 Golden Lane Housing Ltd.

This is the second time that the Issuer has launched a bond for the Charity. In 2014, the Issuer issued its first bond which raised £11 million for the Charity.

The Bonds are available to wholesale and retail investors and will pay a fixed rate of interest at 3.9% per annum until 23 November 2027, payable twice yearly on 23 November and 23 May of each year, with the first coupon payment being made on 23 May 2018. The Bonds are expected to mature on 23 November 2027 with a final legal maturity on 23 November 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
• Cornhill Capital
• Equiniti Financial Services Limited
• iDealing.com Limited
• Redmayne-Bentley LLP
• Shore Capital Stockbrokers Ltd

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 15 November 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 seventh Retail Charity Bond to be launched by the Issuer, following successful previous issues for Golden Lane Housing, Hightown Housing Association, Charities Aid Foundation, Greensleeves Homes Trust and Dolphin Living. In total the bonds have raised nearly £150 million since 2014.

Commenting on the launch, Alastair Graham, Director of Golden Lane Housing, said:
“There are approximately 1.4 million people in the UK who have a learning disability, yet only 16% of those known to the local authority are in secure long-term tenancy or own their own home. By offering safe and appropriately adapted accommodation, with security of tenure, we enable our tenants to have greater independence and control over their lives.

“We raised £11m in our previous Retail Charity Bond issue, which was invested into 30 properties delivering homes for 112 people, a very successful outcome for GLH as well as our tenants and investors. We are now delighted to be returning to the market for a second issue, which will help us to continue to address the enormous housing challenges faced by people with a learning disability and their families, whilst delivering a regular income return to our investors.”

Phil Caroe, Director of Social Finance, Allia, said:
“Allia created the Retail Charity Bonds platform to help charitable borrowers access the finance they need from ethically minded investors. It is a testament to its success that our first charity to use the platform, Golden Lane Housing, is now returning to the retail bond market in order to continue its work.”

John Tattersall, chair of Retail Charity Bonds plc, said:
“This seventh issue shows that the uniformity of our structuring and on-lending process continues to be as efficient as I and my fellow volunteer directors had anticipated.”

For further information about Golden Lane Housing, please go to http://www.glh.org.uk

-ENDS-

For enquiries, please contact:

Golden Lane Housing
Alastair Graham
Tel: 0300 003 7007

FTI Consulting
Dido Laurimore
Ellie Sweeney
Phillippa Cantrill
Cat Stirling
Tel: 020 3727 1000

Peel Hunt LLP
Henrietta Podd
Tel: +44 (0)20 3597 8676

Retail Charity Bonds PLC / Allia
Phil Caroe
Tel: +44 (0)1223 781303

About Golden Lane Housing

Golden Lane Housing Ltd is a charitable company limited by guarantee incorporated in England and Wales. The Charity is registered with the Charity Commission and is a Registered Provider of social housing with the Homes and Communities Agency.

The sole member and parent of the Charity is Mencap, a private company limited by guarantee, incorporated in England and Wales and a registered charity with the Charity Commission.

The Charity was established by Mencap in 1998 to provide quality homes to people with learning disabilities in the UK.

One of the biggest challenges facing people with a learning disability in the UK is lack of access to suitable supported accommodation. Due to the chronic housing shortage in the UK, a significant number of people with a learning disability live in unsuitable residential institutions or with elderly parents and carers, and as a result face an uncertain future. Local authority accommodation is in short supply, and with limited choice available, individuals often have to move into accommodation far away from friends and family. The Charity aims to provide people with a learning disability with the opportunity to live in the right house, in the right place, with the right support, so that they can prosper, develop their independence and skills and contribute to their communities.

Underpinning the Charity’s principal activities are the four core objectives (CORE) which the Charity aims to achieve for all of its tenants:

(a) Choice – to live where and with whom they want.

(b) Opportunity – to build new lives from the secure base that a home provided by the Charity affords.

(c) Respect – to receive and earn respect from the local community.

(d) Empowerment – to make real decisions about their own future.

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.

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 125 listed companies and a trading platform that makes markets in c.3,500 equity and fixed income products.

Peel Hunt ranked 1st in the 2017 Thomson Reuters Extel Survey of UK Small & Mid Cap Brokerage Firms with UK institutions, Wealth Managers and Continental European Institutions, being named top research house in its category, after achieving more first or second ranked sector teams than any other broker.

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 Golden Lane Housing Ltd 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 1 November 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 1 November 2017 (the “Prospectus”. The Prospectus is available on the website of Retail Charity Bonds PLC and Golden Lane Housing Ltd, 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.