The charity Mencap can now only accept investments of more than £84,000 into its bond, which has been oversubscribed. It has already raised £8m from individual and institutional investors including Esmee Fairbain Foundation and the Nationwide Foundation.

The £10 million charity bond launched in February offers a fixed yield of 4% per annum for a five-year fixed term. EU regulations that apply to this type of bond issue dictate that Golden Lane Housing (GLH), the housing arm of Mencap, must stop accepting investments of less than £84,000. However, the charity is extending the deadline to those wishing to invest more than this amount until 28 June. 

Director of GLH, Alastair Graham said: “The huge demand for this bond shows that there is a real appetite among individual investors in social investment.”

Triodos Bank worked in partnership with the GLH on the bond issue. Dan Hird, Triodos Bank’s Head of Corporate Finance said: “We have seen strong interest from both individual and institutional investors wanting to be part of something which has strong social impact and offers a good financial return.”

The funds raised are being used to buy and adapt up to thirty houses across the country, for people with moderate to severe learning disabilities. The first two properties have been acquired and the first residents moved in to a specially adapted house in North Yorkshire, over the May bank holiday.

GLH may launch further bond issues in the future to help the charity further its mission to provide homes for people with a learning disability.