The bonds are issued by a special purpose vehicle, Retail Charity Bonds PLC. Its only business is issuing bonds, lending the proceeds to UK charities and related activities, and it has no employees. Its administration is undertaken by Allia Bond Services (a subsidiary of Allia C&C).
The proceeds of each bond issue will be loaned to a specific UK charity. The charity’s payments on the loan fund the payments to bondholders.
Each series of bonds has limited recourse to the relevant charity loan, meaning that investors in each series are relying solely on the relevant charity for payments of interest and principal. They are not taking risk on any other charities that have received loans through the platform.