Alnwick Garden Trust has raised £10m to fund new developments - with the possibility of more to come - despite the turmoil in the global financial markets.
A charity bond offered by the Trust earlier this month has closed a week early after raising £10m.
The Trust had teamed up with special purpose issuer Retail Charity Bonds and Allia C&C to launch the bond, with the aim of completing the funding for the Lilidorei play village.
As well as the £10m raised from investors, a further £8m of ‘retained bonds’ will be issued which can be sold at a later date to raise additional funding for the Trust as required.
The Trust is hoping that Lilidorei - which aims to be one of the biggest attractions of its type in the world - will make Alnwick Garden a year-round attraction, increasing the contribution it makes to the local economy and creating more than 50 new jobs.
The project has already won backing of £5m in the Government’s Borderlands growth deal.
Mark Brassell, chief executive of The Alnwick Garden Trust, said: “The Alnwick Garden Trust has made a tangible positive impact since its establishment, and we are very encouraged by the reception we have received from the investor community for our charity bond.
“The funds raised will enable us to further our charitable causes which directly enhance the lives of many thousands of people who visit, interact or work at the Alnwick Gardens.”
Investors have snapped up the bonds, which promised 5% interest until 2030.
Henrietta Podd, director of debt capital markets at Allia C&C, said: “The success of this latest charity bond, the only non-sovereign sterling bond closed in last week’s exceptionally challenging financial markets, illustrates the continued demand for investments which make a positive social impact.
“We are thrilled to have been able to support The Alnwick Garden Trust in raising this funding to support the many people who benefit from the Gardens and the Charity’s programme of activities.”
It is hoped that work on the Lilidorei scheme will start this year with a targeted completion date of Easter 2022.
