Alnwick Garden Trust 5% 2030 retail charity bond

[Gan020]

5% interest for 10 years, plus possible extension for further two years at 6%. They are raising up to £20m, but have a grant for £5m if they can get £10m so the £5m grant makes the maths around the ROI look much easier to achieve.

Some heavyweight directors including chairman of Charity Aid Foundation, Finance Director of Greggs, CEO of Northumbria Healthcare, ex Regional Director of Government Office for the NE and the Duchess of Northumberland so I suggest the numbers have been done properly.

It looks reasonably low risk to me and the coupon of 5% at least for the first 5 years looks appropriate. Who knows where interest rates will be in the last 5 years but I’ll take my chance on that and will sell them the bonds in the market if it looks like that’s going to go against me too much.


It's something different in my portfolio providing diversification so that’s a plus for me.

As it’s a charity the interest rate is never going to be excessively generous but getting my income this way does produce a warm glow of satisfaction. Oh and I guess it’ll be a day out to look at the project in detail at some point in the future which will be nice.

[yorkshirelad1]

5% interest for 10 years, plus possible extension for further two years at 6%. They are raising up to £20m, but have a grant for £5m if they can get £10m so the £5m grant makes the maths around the ROI look much easier to achieve.

(snip)

Now you mention this, I recall seeing it mentioned in the weekend share tips,
https://www.sharecast.com/news/tips-round-up-premium/sunday-share-tips-restaurant-group-alnwick-garden-trust-scottish-mortgage--7374592.html
and have taken a closer interest. Will read a bit more and put it in the back of grey cells and ruminate on it for a while. Might be useful. Thanks for the remention.

Info: http://www.alnwickgarden.com/retail-charity-bond-issue/

[Gan020]

Bond markets returns look completely different now.

I've significantly reduced my application. Not sure if that's the right thing to do or not. The rest may get cancelled too.

I'm suspecting this IPO may get withdrawn now anyway.