RCB for Charity Borrowers
RCB is designed to provide charity borrowers with access to the capital markets, enabling them to raise loan finance on light terms for capital investment and growth.
Key features
Amounts from £10m
Initial loan amounts range from £10m to £50m or more. The loan can be further extended by up to 90% of the initial amount through the sale of retained bonds.
5-25 year funding
For terms up to 10 years bonds can be offered publicly and widely distributed. For terms up to 25 years bonds will be placed with one or more institutional investors.
Secured or unsecured
No security is required for public offers of up to 10 years, though borrowers are generally required to maintain enough unsecured assets to cover the loan. RCB can also provide secured longer-dated loans.
Unrestricted
No restrictions on how the borrower uses the funding. Investors will invest based on the credit strength of the borrower and not on the basis of any future business plans.
Light covenants
Unsecured issues typically have light covenants, tailored to each borrower. All borrowers are required to provide six-monthly trading updates and an annual statement of social impact.
Access to a wide range of investors
A listed RCB issue provides access to both institutional investment funds and to individual investors, who can invest from £500 through their broker.
Sustainability bond framework
RCB can issue social, green and sustainable bonds under a framework accredited by S&P Global. This alignment with the ICMA principles creates a strong appeal for ethically-focused investors.
Restructuring of existing loans
RCB provides the ability to purchase, restructure and refinance existing loans, enabling borrowers to address high costs and onerous covenants in their current debt portfolio.