First Arcubus Bond opened

Friday, December 10th, 2010

Having raised £16m since it began in 1999, Citylife, the national issuer of charitable bonds, has changed its name to Allia and has just launched its first in a series of Bonds to give deprived people a better future.

Here’s how it works: Anyone – individuals, companies, churches, trusts, foundations and other institutions – can invest in a 5-year Bond at 0%, 5% or 10% return. When the Bond offer closes, Allia lends some of the money to a non-profit social business such as a registered provider of social housing. Like a bank, Allia can get a better rate than investors can get directly. But unlike a bank, Allia doesn’t make a profit from its loans. It doesn’t give bonuses to staff, it doesn’t have shareholders to reward and it doesn’t have to pay any tax. As a charity itself, it only needs to take enough to cover its costs. So after Allia has made the loan, it takes a small percentage of what’s left to cover its costs, then gives the rest of the money to Arcubus. At the end of the bond, the social business repays Allia’s loan with tax-free interest. This works out at exactly the right amount to give the investors – you – back your money at the interest rate you selected.

It’s ingenious; invest ethically to change people’s lives through microfinance projects in Africa and you can get your money back with interest after 5 years! Find out more at and invest in support of Arcubus today!

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