Charity Bank, which accepts savings from individuals and organisations, and lends solely to social sector organisations, has made loan approvals of over £250 million since 2002. The investment from Barrow Cadbury Trust will allow it to make more loans to charities and social enterprises in the coming year.
Last year (March 2015), Mercers’ Charitable Foundation invested £1 million in Charity Bank and in March 2014 Big Society Capital agreed to make its largest ever single investment – up to £14.5 million of ordinary shares in Charity Bank in three successive tranches between 2014 and 2016.
Helen Cadbury, Chair of Barrow Cadbury Trust, says: “This investment will give Charity Bank the capital to make loans to the social sector, but it is also an expression of our confidence in the Bank and its ethos. We see this investment as a means to promote social justice and further develop the social investment market.”
“We believe it is important that foundations continue to play an active part in social investments as they are the ones which can provide genuine risk capital for social ventures engaged in new solutions – particularly those organisations at an early stage which might otherwise find it difficult to raise funds.”
George Blunden, Chairman of Charity Bank, says: “To receive endorsement from such a major trust as Barrow Cadbury is a very positive start to the New Year.
“Every single one of our shareholders is either a charity or a social purpose organisation. What drives us isn’t profits, but a shared idea about the world we want to live in and it’s this shared vision that sits at the heart of our plans for sustainability and growth.”
He added: “Capital is vital to our mission. Without capital to underpin the bank, we wouldn’t be able to leverage our savers’ money. Because of this leverage, every £1 of capital invested allows us to lend £12 or more to charities and other organisations that help improve and enrich the society we live in.”