Linklaters advises Charity Bank on ground-breaking investment by Big Society Capital
Linklaters has advised Charity Bank on Big Society Capital’s investment of up to £14.5m by way of subscription for ordinary shares in a landmark deal announced today.
The investment will be made over three successive tranches to take place by 2016. The first subscription for £4.5m ordinary shares has now taken place with two further subscriptions to follow. Charity Bank provides affordable loans to charities and social enterprises, helping them to access the finance they need to grow and increase their social impact. As a financial institution, Charity Bank is unique in its focus on lending to good causes and its clear social mission. The bank took the decision in 2013 to grow substantially to meet borrowing needs in the sector, and this transaction represents a significant step towards their goal to increase lending from £55m to £250m by 2018. The subscription is Big Society Capital’s largest ever single investment.
The Linklaters team was led by Aisling Zarraga (Partner) and Victoria Millard (Managing Associate), supported by Rebecca Rigby (Associate) and Jason Shardlow-Wrest (Trainee).
Linklaters is a leader in developing innovative streams of finance for not-for-profit organisations, and is developing a reputation for breaking ground in this space. The firm acted on a pro-bono basis for Charity Bank on this matter, contributing over 700 hours of specialist legal advice. Growing the capabilities of not-for-profit organisations and helping them to innovate and expand is a key theme of the firm’s community investment programme. By applying our particular legal capabilities to enable social sector organisations expand their activities and diversify their income streams, this matter is a great example of the firm’s Collective Responsibility strategy in action.
Patrick Crawford, Charity Bank’s Chief Executive, said:
“The Linklaters team led by Aisling Zarraga provided Charity Bank with unstinting support to an exemplary standard. As a social purpose bank with modest resources, we are very grateful that Linklaters acted so generously as to give us that support on a pro-bono basis.”
For further information please contact Rupert Winlaw on +44 20 7456 3219.