Overview
The Future for Children Bond is a unique opportunity for retail investors to make a social impact and receive capital back, plus a variable return according to success.
The Bond combines a low-risk ethical investment in affordable housing to provide repayment of principal with a high-risk investment in a social impact bond to create a high social impact and the potential for an additional return.
Capital plus bonds with a social impact
78% of the funds invested in the bond will be loaned at a fixed rate to Places for People Homes (PfPH). It is the repayment of this loan plus compound interest at the end of the bond's 8 year term that provides Allia with the funds to repay bondholders the principal amount invested.
PfPH is a registered provider of social housing that builds, sells and rents homes and provides services and support to those who live in them. It has a credit rating from Moody's Investors Service of Aa3.
Supporting children in Essex
After Allia's costs, the remaining 20% will be committed to investments in Children's Support Services Limited (CSSL), a newly-formed company set up to manage an outcomes contract with Essex County Council. CSSL will use this money to commission the delivery of Multi-Systemic Therapy, an intensive family support therapy, for the 11-16 year-olds who are referred to the programme. Essex County Council will pay an agreed amount for every care placement day saved, meaning that the return on this investment depends upon the success of the programme.
Whatever payments are received from CSSL over the life of the programme will be rolled up and paid on maturity as a variable return to bondholders.
The Future for Children Bond will be issued by Allia, a charitable organisation with 14 years' experience of issuing retail bonds to raise finance for social benefit.
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