Big Society Capital has invested another £2.5m in Charity Bank, with a further investment pledged by the end of the year.
Charity Bank is one of the oldest social investors, and makes loans to social sector organisations, often to buy property or develop new business. It is wholly owned by charities and other social purpose institutions.
BSC, a £600m independent social wholesaler set up by government to grow the social investment market, has bought £2.5m of shares in the bank, with another £2.5m to be paid by 1 December.
These latest investments will form the final stages of an agreed programme which will see it invest £14.5m in total since 2014.
This investment is made as Charity Bank experiences continued growth, with £28m of new loan approvals in the first five months of 2017.
George Blunden, chairman of Charity Bank, said: “These further injections of capital from Big Society Capital will enable us to meet the growing demand for loans from charities and social enterprises.
“When Big Society Capital pledged its original investment, we said that we hoped it would be the first of a small number of significant new investors over the next five to ten years. The Mercers Charitable Foundation invested a further £1m in 2015 and the Barrow Cadbury Trust invested £250,000 in 2016.”
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Blunden invited other charitable trusts, foundations and social purpose organisations to invest in his organisation’s shares.
Anna Shiel, head of origination of Big Society Capital, said: “Over 850 loans have now been made to organisations totalling more than £180m.
“These loans have helped support people all around the UK, with 97 per cent of organisations saying it has contributed to achieving their mission and 68 per cent saying the loan helped them to expand their services. Upon the completion of our investment, we look forward to seeing more people and communities supported by their work.”
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