International law firm Freshfields Bruckhaus Deringer has advised Big Society Capital on a multi-tranche subscription in Charity Bank. The investment is the largest ever for Big Society Capital, comprising up to £14.5m of ordinary shares in three successive tranches between 2014 and 2016. It will allow Charity Bank to pursue its aim to increase its lending from around £55m today to around £250m by 2018.
The Freshfields team, working pro bono, was led by partners George Swan and James Smethurst, assisted by John Beckett and Hannah McAslan.
George Swan commented, ‘Big Society Capital gives organisations tackling major social issues access to new sources of finance to help them thrive and grow. This investment in Charity Bank, allowing the bank to realise its expansion plans, is highly significant and it's a deal we’re very proud to be involved in.’
Nick O’Donohoe, Chief Executive of Big Society Capital added ‘The generous pro bono help from Freshfields has been invaluable in bringing about this deal. They have been a pleasure to work with, and their support has helped us to provide the investment that will enable Charity Bank to massively increase their lending to charities across the UK.'
About Big Society Capital
Big Society Capital is a financial institution (authorised and regulated by the Financial Conduct Authority) with a social mission, set up to help grow the social investment market, so that charities and social enterprises who want to borrow money, or take on investment, can access the finance they need to do more.
Since it was set up in 2012, Big Society Capital has committed £140 million in investments to specialist organisations who lend to charities and social enterprises, and are showing every day that social investment can work.
Over five years Big Society will be capitalised with approximately £600 million - £400 million of public funds from English dormant bank accounts, and £200 million from the four main UK high street banks.
www.bigsocietycapital.com
About Charity Bank
Charity Bank has a mission to attract share capital from social investors, take savings from socially conscious individuals and lend solely to social purpose organisations, and, as a result, be the most admired bank in the UK.
Since 2002, the Bank’s innovative approach to lending and its mission to benefit society have enabled it to make loan commitments of over £185 million to charities, social enterprises and other social profit organisations.
Charity Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority No. 207701.
www.charitybank.org
