Bond to fund social enterprises is open for investment

A charitable bond raising money for two east London social enterprises is now open for investment.

The East London Bond has already had £1m investment from UK-wide construction firm Wates Group Ltd, a 112-year-old company that invests in regeneration, has an established charitable programme and holds a community day to allow staff to take part in community projects for one day a year.

Around 20 per cent of the money raised by the bond, launched by national charity Citylife earlier this year, will go direct to social enterprises Bromley-by-Bow Centre and Community Links. The remaining 80 per cent will be loaned to a housing provider to develop affordable housing, which is paid back after five years with interest. This cash is used to repay investors.

Tim Jones, CEO of Citylife, said: 'The charitable bond adds a whole new dimension of philanthropy and corporate social responsibility. It's no longer just about how much you can afford to give away. With a bond you can now invest your capital securely and make a social profit.'

Encouraging other investors, Paul Drechsler, chair and CEO of Wates, said: 'We're strongly committed to supporting the communities where we work and live and the bond is an effective and high impact way for us to do that.

'As the first investor in the East London Bond our ambition is to inspire confidence in other potential investors and see many more companies follow our lead.'

An array of other senior figures have also pledged their backing, including life president of Winterflood Securities, who has previously invested in a Citylife bond.

He said: 'As someone who has invested in a charitable bond with Citylife before - and received all my money back, I can personally vouch for this excellent, tried and tested mechanism.

'The bond is a smart, safe and great value way to release funds for charity and to satisfy our social responsibilities.'

Citylife is currently developing a number of further charitable bonds to be offered in 2010 and working on plans to launch a new fundraising service for charities next year.

To find out more about the East London Bond and to make an investment, visit www.eastlondonbond.org

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