The Royal Masonic Benevolent Institution Care Company 6.25% fixed rate Sustainable Bonds due 2029 pay a fixed rate of interest of 6.25% per annum, payable twice yearly on 7 March and 7 September of each year. The Bonds are expected to mature on 7 March 2029 with a final legal maturity on 7 March 2031.
London Stock Exchange listingRMBI Care Co.
RCB issued £20m of 6.25% bonds for RMBI Care Co. in March 2023 to help fund the development of new care homes and the decarbonising RMBI Care Co.’s properties. £10m was raised from the RCB investor community while £10m of the bonds were retained for sale to raise further funding at a future date.
About RMBI Care Co.
The Royal Masonic Benevolent Institution Care Company (RMBI Care Co.) has a long history of providing high quality social care services, having opened its first home in 1850. Today the organisation has 17 care homes in England and Wales providing more than 1,000 beds for older residents with residential care, nursing and dementia needs.
Bonds issued
Bond details
Issue date:
07 March 2023
Expected maturity:
07 March 2029
Final legal maturity:
07 March 2031
Amount issued:
£20m
Coupon type:
Fixed
Coupon:
6.25%
Frequency:
Semi-annual
Payment dates:
7 March, 7 September
ISIN:
XS2491730375
SEDOL:
BQB3FY8
LSE Ticker:
RMBI
Bloomberg ticker:
RCHBLN 6 ¼ 03/07/29
Bond documents
Working with Allia
As RMBI Care Co. was looking to expand its offering to customers, there was a need to raise finance in order to develop new care homes. Mark Lloyd, Managing Director at RMBI Care Co., began looking at traditional forms of finance from the high street banks and other large institutions, but struggled to find an option that met his requirements of funding that was unsecured and had a mixture of private investors and institutional investors.
Mark says: “With the big banks and institutions, their terms weren’t as flexible or as good in terms of borrowing, so RCB really stood out as a vehicle.”
Having decided on RCB, Allia C&C worked with RMBI Care Co. and its lawyers to prepare a prospectus for approval by the Financial Conduct Authority (FCA), a process during which Allia C&C’s expertise played a crucial role. As Mark explains: “I’m a care provider – not an expert on the stock market. Allia C&C helped in refining the prospectus content to address the FCA’s questions and they acted as a great sounding board.”
Shortly after receiving FCA approval on the prospectus, the financial markets hit severe turbulence as interest rates spiked. Mark notes that Allia C&C’s confidence and experience smoothed this process and allowed the launch of the bond offer in March 2023 and the successful raise of £10m. From RMBI’s standpoint, this was a landmark moment, with members of the team attending a launch ceremony at the London Stock Exchange.
“That gave us great exposure to the stock market, which opened up a new stakeholder group for us as a charity,” Mark says.
A values based approach
Mark says the Allia C&C team showed a clear commitment to a values-based approach. He says: “They’ve got very strong values and, having got to know them and the types of charities they support, the ethical values they demonstrated were really important to us.”
In turn, this approach led to interest from investors who shared these values. When arranging roadshows, Mark recalls being impressed that two or three investment houses not only talked to RMBI Care Co. but wanted to visit its facilities. “Allia C&C was brilliant in this process, they facilitated, supported and acted as a bridge at every stage,” he says.