South Bristol Charity and Triodos Bank Launch Local Social Bond Offer for New Community Centre and Nursery
Southville Community Development Association and Triodos Bank launch bond offer to raise £280,000 towards the cost of a new £1.19m community hub and nursery in Bedminster.
Local charity the Southville Community Development Association (SCDA) and Bristol-based Triodos Bank are launching a bond offer on Monday 23rd January to help raise £280,000 towards the cost of the Chessel Centre, a new £1.19m community hub and nursery in Bedminster.
The centre, which will open in the autumn, will comprise a 54-place nursery, a meeting room for use by local community groups/activities such as after-school clubs for children and social clubs for older people, as well as large outdoor play spaces for the nursery.
Bristol residents are invited to an open event at the Southville Centre on Beauley Road at 6.00pm next Monday 23rd January to find out more about the bond offer and how it will benefit the local community.
Working in partnership with the corporate finance team at Triodos Bank, the SCDA bond is expected to pay 4% gross fixed annual interest for six years. The minimum investment is £500 and investors in the project may be eligible for Social Investment Tax Relief.* Payment of interest and repayment of capital are not guaranteed and are dependent on the continued success of the SCDA's business model and the new nursery.
The SCDA's core activity is the provision of high quality childcare and education for children under five, with around 180 local children using its nursery services at the Southville Centre. The OFSTED outstanding rated nursery has been such a success that it is currently at full capacity, with a waiting list of 250 children and families often waiting up to two years for a place. As an ethical organisation the charity also holds the Social Enterprise Mark and Gold Standard from the Green Business Tourism Scheme.
The opening of this second nursery will not only enable more families to have access to high quality local childcare and provide additional community facilities for the area but, by generating greater surplus, will enable the SCDA to increase its charitable activities and investment into the Bedminster community.
Situated on the site of the former Boys Brigade building at the corner of Chessel and Garnet Streets, the new 476 sq m Chessel Centre will also support the local economy by providing new jobs and using local contractors for the building works.
The £1.19m total cost of transforming the site is being met through a combination of £196,000 from the charity's reserves, capital grants and repayable finance. In addition to the funds raised through the £280,000 public bond offer, the SCDA has been awarded grants from Bristol City Council (£74,000) and the Power to Change Community Business Fund (£300,000). Furthermore, the bond is expected to qualify for a further £280,000 of matched funding from Big Society Capital managed by Ethex.
Simon Hankins, CEO of SCDA, said: "Our values as an organisation have always focused on what's best for our local community. The exciting thing about this bond is that Triodos found a way to allow our community members to invest in something that will directly benefit them in return, in respect to both our shared community and our financial wellbeing. I like to think of it as a form of crowdfunding for BS3."
Dan Hird, head of Triodos Bank Corporate Finance, comments: "It's not often that investors get the chance to support a well-known charity on their own doorstep and actually see the positive change their investment can have. We're confident that local investors will want to support the SCDA as they address the growing local childcare need and improve the lives of area residents."
Investment decisions must only be made on the basis of the offer document and not on any information provided in this press release. Investing in the SCDA bonds is not the same as depositing your money in a bank account as your capital is at risk and you may not get back the full amount that you invested. An investment in the SCDA bonds is not covered by the Financial Services Compensation Scheme.
Notes to Editors
SCDA Charity Bond Launch Event
Date: Monday 23 January 2017
Time: 18.00 - 19.30
Venue: The Southville Centre, Beauley Road, Bristol, BS3 1QG
0117 311 0291
Plaster Creative Communications
0117 953 0320
About the Bond
* The SCDA has received advance assurance from HMRC that the bond offer should be eligible for Social Investment Tax Relief (SITR). SITR encourages individuals to support charities and social enterprises and in turn helps those charities and social enterprises to access new sources of finance. Individuals making an investment in the bonds can, depending on their circumstances, benefit from income tax relief at 30% of the amount invested. The availability of SITR can increase the total return over the full term of the bond to an estimated 10.3% gross per year for a higher rate (40%) taxpayer. The ability to benefit from SITR depends on an investor's personal circumstances, current tax legislation and the company's compliance with the rules.
Triodos Bank Corporate Finance has published an offer document in cooperation with SCDA dated January 2017. Applications can only be made on the basis of the information contained in the offer document and accompanying application pack. The Southville Community Development Association is a private company limited by guarantee, registered in England and Wales under the Companies Act 1985 (registered number 2542176) with registered office at The Southville Centre, Beauley Road, Southville, Bristol BS3 1QG. Registered with the Charity Commission with registered charity number 1000544.
This financial promotion has been issued and approved by the UK division of Triodos Bank NV, incorporated under the laws of the Netherlands with limited liability, registered in England and Wales with branch number BR3012, authorised by the Dutch Central Bank (DNB) and regulated in the UK by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Details about the extent of our regulation by the FCA and PRA are available from us on request. Registered office: Triodos Bank, Deanery Road, Bristol BS1 5AS.
About Triodos Bank
Triodos Bank is a global pioneer in sustainable banking using the power of finance to invest in projects that are good for people and the planet. Triodos uses its €12 billion in assets to create social, environmental and cultural value in a transparent and sustainable way.
With UK operations based in Bristol, Triodos Bank has branches in the Netherlands, Belgium, Spain, Germany and an agency in France. Globally, Triodos Bank has microfinance projects in Central Asia and Eastern Europe, and is a founding member of the Global Alliance for Banking on Values (GABV), a worldwide network of 36 banks seeking to transform finance into a vehicle of positive influence.
Triodos Bank's advisory arm, Triodos Corporate Finance, works exclusively with sustainable businesses and has a long track record of advising businesses on raising capital through private placements and retail offers. Since 2011, Triodos Corporate Finance has raised over £85 million for businesses within the sustainability sector with investments from institutions, charitable foundations, high net worth individuals and retail investors.
Triodos Bank N.V. has a full banking license and is registered with The Nederlandsche Bank N.V. (the Dutch central bank) and The Netherlands Authority for the Financial Markets.
About Southville Community Development Centre
The Southville Community Development Association (SCDA) is a charity that was established in 1990 to serve the community of Greater Bedminster (BS3), an inner city area of Bristol. The SCDA supports approximately 2,000 individuals each week across a variety of services, designed to improve the health and wellbeing of our community residents. The charity's core activity is the provision of high quality childcare and education for children under five - currently around 180 children use these services. The SCDA has achieved Ofsted 'outstanding' status across all of its childcare provision and are the proud holders of the Social Enterprise Mark.
About Power to Change
Power to Change is an independent trust which helps local people build community businesses and supports the vibrancy of local places, thanks to a £150m endowment from the Big Lottery.