Social housing group launches bond to fund homebuilding
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Your support makes all the difference.Social housing group Places for People has launched a bond offering 5 per cent a year linked to the affordable-housing sector.
The five-and-a-half-year bond, which is available from 27 June and expires in December 2016, requires a minimum investment of £2,000 and can be bought or sold through stockbrokers or wealth managers.
The launch of the bond comes after the Government has invested around £9bn in new affordable homes over the past three years.
Places for People is a non-profit organisation with 62,000 homes. The group uses guaranteed payments from the Government to build and maintain properties and will use the money from these bonds to help fund its projects, such as the one pictured, above.
Steve Binks, the chief finance officer, said: "The Government is still investing in affordable homes, but the amount of government money going into social housing has been cut. There is a great need for low-cost homes." He added: "Investors are getting a safe-haven asset with a return which is fixed and guaranteed, at a level much higher than government gilts."
The bonds are unsecured, meaning investors will lose their investment if Places for People goes bust. Investors can hold the bond in their Individual Savings Accounts or Self-Invested Personal Pension Plan.
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