GREENSLEEVES HOMES TRUST ROADSHOW

Retail Charity Bonds
Roadshow announcement
RNS Number : 0106F Retail Charity Bonds PLC 11 November 2020

"A transaction may follow, subject to market conditions." As ever.
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Comments

  • Interesting for me as a current bond holder. Another RCB with duration of at least 5 years and a coupon of 4.25% plus I guess would be interesting to many here depending on terms etc.
  • I'm not a holder at the moment @sussexmade but yes subject to terms (and my own cash position at the time) I'm interested. I've factored it into my December plan, alongside a much small commitment to the Ferry Farm Community Solar raise coming soon on Triodos Crowd. That is being headlined as 4% inflation linked.
  • It's likely to be around a 10 year bond.

    The coupon will be interesting. Last time it was 4.25% for 9? years.

    I already own a few and I'm looking for something higher than 4.25% to get my interest
  • Good returns: your savings can help homeless people – and earn you 5%

    https://www.theguardian.com/money/2020/nov/14/good-returns-savings-homeless-people?utm_content=buffer72510&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

    "A “remarkable” 92% of businesses that have raised finance via withdrawable shares (also known as community shares) are still trading, according to a recent report from Co-operatives UK, the network for the country’s thousands of cooperatives."

    - I may have a look around and see if I can find that report.
  • 10 years is a long time for only 5%
  • morgleman, 10 year gilts are 0.3% For me all depends on the credit quality of Greensleeves, any views on that ?
  • I've looked through everything and in my view it's fairly priced based in the current environment and I'm sure the issue will be popular and they will get the full £25m they are looking for.

    I'm not sure what to do. My view is that inflation and interest rates will rise faster than the market expects and therefore 10 year gilts are too low. I've been wrong on this so many times though over the last 2 years and I would have been better off listening to Mr. Market.


  • morgleman, hind, JammyDodger- I have the previously issued bond ( 4.25% 2026 ) in some number so don't think I will subscribe but am considering switching out part to the new bond. When I bought the 2026 I noted that Greensleeves were reckoned to " have good cash flow and good asset quality ". I believe this still to be the case but not sure if the two bonds will rank pari passu.
    As a reference Alnwick Garden Trust 5% 2030 with option to extend 2 years more are trading with a bid at a slight premium of some 2% or so, so think the coupon/maturity ratio is proven and about right .
    If I didn't already hold the first issue I think I would subscribe. Just one concern for some might be that the turnover on ORB is quite low and hence the spread can be quite wide ( for both Greensleeves and Alnwick ).
    If you look back to comments on here under " Greensleeves" dating back to 2017 for the first issue I commented on 5th October 2020 that they had just realised a gain of some £9m odd and Arji also provided a link to the press release.
  • Thank you Sussexmade. I dont hold any 2026 so imagine you have read the accounts before. I note the below, are they in line with your thoughts ?
    Net financial debt (long term debt plus short term debt minus cash) £35,968,856
    Twenty two of the Charity’s homes are owned on a freehold basis and three homes are owned on a leasehold basis. The freehold properties owned by the Charity as of the date of this Prospectus were valued at £97m as of 24 October 2020.
  • hind- that sounds about right and I noted also that the majority of the homes are in good wealthy locations and most of which would lend themselves to be converted to housing if needs be ( worst case scenario ! ).
    They have a new project in Tunbridge Wells ( area that I know well ) the position of which is prime in every aspect.

  • Thanks for bringing this issue to my attention. I am subscribing. I view it as safe and I want bonds with a longer duration.
  • I haven't set out to invest in charity bonds, but I've also put a little cash into to the Ferry Farm Community Solar issue on Triodos. In a month that including buying NCYF (& OCN.L), Downing issues and a couple of new offers on WiseAlpha I'll leave you to guess which one's got most interest from my partner ;) I'm still waiting for a response from my broker on Greensleeves. I think it's decent enough issue and I'm not put off by the longer duration. As they say, onwards and upwards.
  • Thanks for that link, dandigirl. I haven't yet finished looking into this but was minded to put some money into this. It's good to have another view.
  • dandigirl-thanks for MOS link and just seen the hard copy. As stated before this looks pretty solid and they seem to have taken care of covid pretty well and the number of residents is steadily increasing and staff turnover is relatively low compared to other care homes. Q.C.C. ratings for the homes is above average and a new home in Ipswich will be complete and handed over soon in the new year. Other developments/updates are mostly going to plan.
    Think my strategy will be to buy a chunk of these even though I have a lot of money committed up to 2032 already and look maybe to sell some 2026 if the bid price moves above par ( maybe 2-4 pct ) or even the new bonds if they also get above par and really use it as a savings account ( better than building society 0.25/50 pct ).

    Hope i'm right, good luck all.
  • Prospectus says not more then £25m. Small issue. Wouldn't be surprised if they are oversubscribed given scarcity of such issues. Anyway, we are putting some in our SIPPs and ISAs.
  • Also subscribed-it was either this or Bitcoin !. Seriously think it will be oversubscribed and could easily see a small premium maybe similar to Alnwick. Sold out some Reits ords after recent strong showing ( non retail ) to fund this so risk off and slight risk on I guess.
    Looking at all the bonds held and nearly all have recovered now to close to pre-covid levels.
  • Also subscribed - I'm a current holder of the 4.25%. As Dandigirl mentioned the Q.C.C. ratings are univerally good or better. The current issue is around par - not expecting much capital appreciation. In for the long haul - can't see interest rates rising much anytime soon. Not sure about Bitcoin. For an edge of the seat ride try a Tesla or even better some Tesla stock!
  • I have spent days dithering over this and concluded that if I spend this much time dithering I should pass.

    I previously took up BUR3 at 5% for 9 years and AGT1 at 5% for 10 years and this fits the sweet spot in my risk profile but somehow I'm passing because mostly I cannot work out what on earth is going on with the markets.

    We are in the midst of the worst economic period for decades but some things are wrong. The housing market for example which I'm thinking is going to need continuous support from the government if house prices are not to fall. Asset valuations of retail and office space is another.

    Inflation worries me as does unemployment.

    Clearly Mr. Market isn't worried with 10 year gilts at 0.36% and that in a nutshell is what's doing my head in. The Covid costs have been resolved by printing money and Mr. Market thinks there will be no consequences on inflation. This I disagree with and would point to inflation after the money printing in 2008.

    Happy to keep my 26's but 10 years is a long time!



  • JD: Surely one of the good features of these bonds is that you need not be locked in for the whole period and can sell whenever if you want to? In the meantime, 5% is being paid.

  • Dandigirl - agreed

    A few days ago the best deposit account I could see was a 5 year one paying 1.3% (Close Brothers)

    Even selling these a bit below par should do better than that, so for me at least, I am comfortable with these, but one has to keep an eye on inflation to determine when to sell.

    If I were youinger I would do other things maybe

    Woz

  • Early closure of offer period
    Retail Charity Bonds PLC (the "Company") announces that the Offer Period for the Greensleeves Homes Trust 5% Bonds due 2030 (the "Bonds") will close at 12 noon (London time) on 3 December 2020 (the "End of Offer Date"), such time and date being earlier than the originally scheduled end to the Offer Period which was 12 noon (London time) on 11 December 2020.
    - that's all folks.
    No great suprise! I ordered some via my broker and a much smaller amount via WiseAlpha.
  • Dandigirl. For me it's the balance of investing now and getting 5% or waiting for the next bus to come along and trying to work out whether the next bus will have a sufficiently better return to outweigh the time I'm only earning 1% on my legacy instant access accout.

    Having said all that I suspect it's going to open at a premium looking at where the market has moved over the last 14 days. Well unless Boris screws things up with Brexit over the weekend.
  • Aargh ! I realised it might close early but hadn't expected it to be SO early. I ordered some in my SIPP a few days ago, but haven't yet ordered any in my ISA. I expect these to trade at a premium - the 2026 4.25% bonds are currently offered at £103 - so I don't think they will be as attractive as the initial offering.
  • curioushaul-thanks for update and as you say no great surprise. Suspect will open first day of trading at 102.50 bid and then maybe to 103/4 similar to AGT. As time goes on the dealing spread will get wider due to lack of inactivity. As I said previously and Woz said today the return will be better than a savings account and will continue to be probably for 5/6 years if not the whole term.
    Added to all this the homes are well situated, good Q.C.C. ratings, low staff turnover, not for profit and with the end hopefuly of covid soon an increase in occupation numbers.
  • Gwm-I have enough thrills at the moment with my football team so I couldn't cope with anything more exciting and my Jag does reasonably well at the moment !
  • My pleasure. Now we have to turn attention to the next opportunity. The never ending task. Still, I've just cut my very full and long pandemic beard, so it's all down hill from here :smiley: . I see Triodo's Notts. YMCA is looking some distance from the finish line, I may be getting my small commitment back!
  • They only issued 15M into the market.....

    GREENSLEEVES HOMES TRUST 5% BONDS DUE 2030

    Issue Size Announcement

    This announcement constitutes the Issue Size Announcement as referred to in the prospectus dated 23 November 2020 (the "Prospectus") and must be read in conjunction with the Prospectus.



    Defined terms used herein shall have the meanings attributed to them in the Prospectus.



    The Offer Period relating to the Bonds closed at 12 noon (London time) on 3 December 2020 and, accordingly, Bonds can no longer be subscribed for pursuant to the offer. In accordance with Article 17 of the Prospectus Regulation, the Issuer is pleased to confirm the following in connection with the offer of the Bonds:



    Issue Date:



    17 December 2020

    Total principal amount of the Bonds issued (including Retained Bonds):



    £25,000,000

    Total principal amount of Retained Bonds



    £10,000,000

    Amount of the Loan to be advanced on the Issue Date



    £15,000,000
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