The Charities Aid Foundation’s Retail Charity Bond, which launched last week, has now raised over £20m and has closed early.

The bond, which was launched via Retail Charity Bonds PLC, was listed on the London Stock Exchange. Launched on 22 March 2016, the offer period for the bond closed early at 3pm on 29 March 2016 due to strong demand. It had been expected to close at 12 noon on 6 April 2016.

John Low, chief executive of CAF, said: "We are delighted at the reception to the Charities Aid Foundation Retail Charity Bond and its early closure. The proceeds of the bond will be used to further our work, enhancing CAF's services for donors and the thousands of charities we work with."

The bond, which will pay 5 per cent a year until 2026, is the third to be issued through Retail Charity Bonds PLC. The platform was created by Allia, a UK charity and social investment specialist, and established in association with Canaccord Genuity.