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The Alnwick Garden Trust 5% Bonds due 2030

March 4, 2020

This is an advertisement and not a prospectus.

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.

MiFID II retail investors, professional investors and ECPs target market – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients (all distribution channels) and also retail clients (all distribution channels).

LAUNCH OF CHARITY BOND
THE ALNWICK GARDEN TRUST 5% BONDS DUE 2030

Retail Charity Bonds PLC announces the launch of The Alnwick Garden Trust 5% Bonds due 2030 (the “Bonds”).

About The Alnwick Garden Trust

The Alnwick Garden Trust (the “Charity”), established in 2002, manages The Alnwick Garden (the “Gardens”), a 67-acre garden and visitor attraction in the North East of England.

The Charity is a charitable organisation that cultivates communities and raises aspirations in a place of beauty, inspiring and connecting people in an inclusive garden environment that creates learning opportunities and enriches lives. The Gardens feature a range of unique spaces and themed play areas, including: the Poison Garden, the only garden of its kind, filled with a large selection of lethal plants; the largest treehouse in the world; the Ornamental Garden, home to over 16,500 European plants; the Rose Garden, showcasing a collection of over 3,000 roses; the Serpent Garden, comprising different water sculptures; the largest Taihaku Cherry Orchard in the world, and the Grand Cascade, a tumbling mass of water, ending in an eruption of fountains. Last year, over 350,000 people visited the Gardens.

The income generated by the Gardens enables the Charity to deliver a range of community programmes that directly tackle isolation and loneliness, unemployment and exclusion, and support young people to make positive life choices and increase their chances of realising and achieving their aspirations. Its programmes are tailored to be flexible and responsive to ensure that improved wellbeing and mental health are embedded throughout and that individuals always feel better after they have visited The Alnwick Garden.

The Charity’s longest running programme for example, the “Elderberries”, supports over 1,000 elderly people each year who are lonely, isolated and some with early on-set dementia through structured, inclusive activities and one-off events. The Charity also delivers programmes for young people, including “Roots and Shoots”, working with schools to promote healthy lifestyles; “Grow into Work”, helping to tackle the high levels of local unemployment; and “Drugs Education”, delivering a range of activities to address growing substance abuse issues.

Beyond the impact of these Community Programmes, the Charity contributes significantly from an economic and social perspective to the wider region. Based on independent research, the Charity estimates that it has contributed about £282 million to the local economy over the last 18 years, 40% of which has been spent with local suppliers. The Charity currently has 123 full-time equivalent employees, whilst its economic activity has supported 2,800 jobs regionally since opening.

Future developments

One of the Charity’s key future developments is the Lilidorei Play Village (“Lilidorei”), which will be one of the largest play structures in the world. The all-weather attraction, designed to appeal to families throughout the year, will be in character with the existing treehouse and forest environment and will sit in front of a vast, imaginative and complex play structure with a magical atmosphere, surrounded by an earth embankment.

The Charity believes that the development of Lilidorei will provide additional financial security for the future of The Alnwick Garden and increase its economic impact in North Northumberland and the wider area (potentially to the value of £12 million annually, according to independent research commissioned by the Charity). It further anticipates that the attraction of greater visitor numbers to the region during the winter season will benefit the tourism industry and thereby the local economy.

The Bonds

The Bonds will be issued by Retail Charity Bonds PLC (the “Issuer”), a special purpose issuing vehicle created to connect 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 The Alnwick Garden Trust.

The Bonds are available to wholesale and retail investors and will pay a fixed rate of interest at 5% per annum until 27 March 2030, payable twice yearly on 27 March and 27 September of each year, with the first coupon payment being made on 27 September 2020. The Bonds are expected to mature on 27 March 2030 with a final legal maturity on 27 March 2032.

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
  • Equiniti Financial Services Limited
  • iDealing.com Limited
  • Redmayne-Bentley LLP

Allia C&C 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 12 noon on 20 March 2020. 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 Financial Conduct 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 on or around 30 March 2020.

This is the ninth series of bonds to be launched by the Issuer, following successful previous issues for Golden Lane Housing, Hightown Housing Association, Charities Aid Foundation, Greensleeves Homes Trust, Dolphin Living and Belong. In total the bonds have raised over £200 million since 2014.

Commenting on the launch, Mark Brassell, Chief Executive of The Alnwick Garden Trust, said:

“We are deeply proud of the positive impact the Alnwick Garden makes on the lives of the thousands of people, old and young, that have enjoyed all it has to offer over the past 18 years, as well as the significant contribution that it makes to the local economy, as one of Northumberland’s main visitor attractions. Growing the Garden’s seasonal appeal together with associated revenue will support the Charity in being able to fund more of our highly valued community programmes which help tackle issues such as isolation, loneliness, unemployment and mental health, which are so prevalent in today’s society. With this, we are excited by the potential of the Lilidorei Play Village, an all-weather attraction which, on completion, will be one of the biggest play structures in the world and will completely transform Northumberland’s highly seasonal tourism economy,  substantially increasing annual footfall by around 250,000 paying visitors whilst creating multiple new jobs.”

Henrietta Podd, Director Debt Capital Markets, Allia C&C, said:

“Allia C&C is delighted to be launching this bond for The Alnwick Garden Trust, the seventh charity to use the RCB platform and one delivering such a wide range of educational and wellbeing facilities for its community and beyond. The RCB programme has now delivered over £200m for a wide range of charities delivering strong social impact.”

John Tattersall, chair of Retail Charity Bonds PLC, said:

“We are proud to be launching our ninth issue, a further demonstration that the uniformity of our structuring and on-lending process continues to prove efficient and work for a variety of different charities.”

For further information about the Gardens and the Charity, please go to https://www.alnwickgarden.com

-ENDS-

For enquiries, please contact:

The Alnwick Garden Trust

Mark Brassell
Tel: +44 (0)1665 511350

FTI Consulting

Dido Laurimore
Ellie Sweeney
Tel: +44 (0)20 3727 1000

Allia C&C

Henrietta Podd
Tel: +44 (0)20 3039 3452

Retail Charity Bonds PLC

Briony Maritz
Tel: +44 (0)1223 781312

About The Alnwick Garden Trust

The Alnwick Garden Trust, established in 2002, is a registered charity in England and Wales, regulated by the Charity Commission. It manages The Alnwick Garden, a 67 acre garden and multi-award winning visitor attraction adjacent to Alnwick Castle, Northumberland which is one of the region’s main tourist attractions.

The Charity is operated on a not-for-profit basis meaning all funds available are invested back into its operations and delivery of its charitable objectives.

Features of The Alnwick Garden include: the Poison Garden, the largest treehouse in the world, the Ornamental Garden, the David Austin Rose Garden, the Serpent Garden, the largest Taihaku Cherry Orchard in the world and the Grand Cascade, a 91m long water attraction comprising 21 weirs. In addition to The Alnwick Garden itself, the Charity has numerous award winning community outreach programmes that benefit people of all ages.

About Allia C&C

Allia C&C is a leading expert in socially responsible finance, working to amplify economic and social impact. It supports a range of organisations that span the impact spectrum, from charities through to businesses that act responsibly – facilitating their access to the most appropriate and optimal funding for their needs from investors who are interested in creating impact.

The team at Allia C&C were responsible for the creation of the Retail Charity Bonds platform and have managed each of its bond issues.

Allia C&C is a brand name of City & Continental Ltd, an Allia company.

For more information please see www.alliacc.com

About Retail Charity Bonds

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 is carried out by Allia Bond Services Ltd, an Allia company.

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

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 The Alnwick Garden Trust becomes insolvent or goes out of business, investors may lose some or all of their investment.

This announcement is an advertisement within the meaning of Article 2(k) of the Prospectus Regulation and is not a prospectus for the purposes of Regulation (EU) 2017/1129 (the “Prospectus Regulation”). A prospectus dated 4 March 2020 (the “Prospectus”) relating to the Bonds has been prepared and made available to the public in accordance with the Prospectus Regulation.

The Prospectus is available on the website of Retail Charity Bonds PLC (www.retailcharitybonds.co.uk/bonds/the-alnwick-garden-trust) and the website of The Alnwick Garden Trust (www.alnwickgarden.com/retail-charity-bond-issue). A key information document (“KID”) pursuant to Regulation (EU) No 1286/2014 has been prepared by Retail Charity Bonds PLC in connection with the Bonds. A copy of the KID is also available on the website of Retail Charity Bonds PLC (www.retailcharitybonds.co.uk/bonds/the-alnwick-garden-trust).

The Prospectus has been approved by the Financial Conduct Authority (the “FCA”) as competent authority under the Prospectus Regulation. The FCA only approves the Prospectus as meeting the standards of completeness, comprehensibility and consistency imposed by the Prospectus Regulation. Such approval should not be considered as an endorsement of Retail Charity Bonds PLC, The Alnwick Garden Trust or the quality of the Bonds that are the subject of the Prospectus.

Potential investors should read the Prospectus before making an investment decision in order to fully understand the potential risks and rewards associated with the decision to invest in the Bonds that are the subject of the Prospectus. Investors should not subscribe for any bonds referred to in this announcement except on the basis of information in the Prospectus.

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.

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.