Greensleeves Care has launched a retail charity bond for wholesale and retail investors, which offers 4.25% interest every year until 2026.
Greensleeves is a charity that provides care and accommodation for the elderly through residential, nursing and care homes.
As the NHS struggles to deal with an ageing population on a shoestring budget, Greensleeves wants to use the funds to grow its portfolio to meet increasing demand for nursing and care services.
This is the fourth retail charity bond to be launched, following Golden Lane Housing, Hightown Housing Association and Charities Aid Foundation, which attracted demand from ethical investors.
HOW DO I INVEST?
Greensleeves’ offer period is expected to close on 24 March at 12pm and can be accessed by various stockbroker service providers including AJ Bell Securities.
The bonds have a minimum initial subscription of £500 and interest will be paid twice a year on 30 March and 30 September.
WHAT ARE THE RISKS?
While the 4.25% interest rate is tempting, investors need to take into consideration the usual risks that bonds pose.
Interest rates are currently at a record low of 0.25%, but if these increase before 2026, investors may see the price of the bonds fall.
Another risk is that the money won’t be paid back, which can happen if the business goes bust and cannot afford to pay its creditors.
