Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
You could lose all the money you invest
If the business you are investing in fails, there is a high risk that you will lose your money. Most start-up and early-stage businesses fail.
Advertised rates of return aren’t guaranteed. This is not a savings account. If the borrower doesn’t pay you back as agreed, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money. If it looks too good to be true, it probably is.
These investments are sometimes held in an Innovative Finance ISA (IFISA). An IFISA does not reduce the risk of the investment or protect you from losses, so you can still lose all your money. It only means that any potential gains from your investment will be tax free.
You are unlikely to be protected if something goes wrong
Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
You are unlikely to get your money back quickly
Many bonds last for several years, so you should be prepared to wait for your money to be returned even if the business you’re investing in repays on time.
You are unlikely to be able to cash in your investment early by selling your bond. You are usually locked in until the business has paid you back over the period agreed.
Don’t put all your eggs in one basket
Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
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Invest in a charitable affordable childcare provider
London Early Years Foundation (‘LEYF’) is a charitable social enterprise that provides high quality early years education to children across London. Its cross-subsidy model means that it can operate nurseries in areas that would not be attractive to for-profit nursery providers. The charity runs 39 nurseries across 12 boroughs in London including in some of the city’s most deprived wards.
The first five years of a child's life profoundly shape their future life outcomes, especially for those from disadvantaged backgrounds. Early years education and care is vital to building a solid and broad foundation for lifelong learning.
LEYF has grown significantly over the last 15 years and is now one of the country's leading social enterprises. In 2021, LEYF generated annual income of c. £22 million.
We believe that the right early childhood education in the highest quality nurseries can support children to achieve their full potential. However, the sad reality is that many children from disadvantaged backgrounds or families struggling with poverty are unable to access an affordable nursery and benefit from high-quality education. That is why the essential financing raised through this bond offer will enable us to significantly increase our social impact by opening more nurseries in areas of London that need us most.
June O’Sullivan MBE, Chief Executive of LEYF
The bond offer
LEYF is seeking to raise £1.5 million as a first step in its long-term strategy that would more than double LEYF's existing portfolio. It will invest the money into new leasehold and freehold nurseries across the city.
IFISA eligible
LEYF bonds are eligible to be held in a Triodos
Innovative Finance ISA (IFISA). As with all ISAs, there are eligibility
criteria and you receive interest tax-free. ISA eligibility does not guarantee
returns or protect consumers from losing their money.
To invest in LEYF bonds through a Triodos IFISA,
select the ‘Invest through IFISA’ option. This selection will add to your
current year IFISA or will open a new IFISA if you haven’t previously opened
one.
Transferring an existing ISA
If you want to invest by transferring an existing
ISA to a Triodos IFISA you must first request the transfer. You can do this
under ‘Account’ once you’ve become a registered user of the platform. Your ISA
Key terms
Issuer
London Early Years
Foundation
Target amount
£1,500,000
Term
7 years, repayable
on 31 May 2029
Minimum investment
£50
Interest
5% gross per year.
Payable in arrears on 31 May each year (paid net of UK basic rate tax unless
held in an IFISA). Payment of interest and repayment of capital are not
guaranteed.
Gift interest
Although the standard interest rate is 5%, investors will be given the option to select 0% or 2.5% interest rate should they wish to forego part or all of their interest for the term of the bond.
Early repayment
LEYF has the right
to repay the bonds without penalty from 31 May 2025.
Unsecured
The bonds are
unsecured, which means that bondholders will rank equally with LEYF’s other
unsecured creditors and behind secured and preferential creditors on
insolvency.
Covenants
A gearing covenant,
which places a limit on the Charity’s total borrowings. A breach of this
covenant triggers a higher rate of interest for the period of the breach. Two
consecutive breaches would be an event of default.
Transferability
Bonds are
transferable but are not listed on any investment exchange which means that
bondholders will have to find a willing buyer and agree a purchase price with
them, which in practice may not be easy. Investors should be prepared
to hold the bonds for their full seven-year term.
Minimum raise
£750,000. If less
than £750,000 is raised, monies will be returned to investors with no accrued interest.
Timetable
Closes on 29 July 2022,
unless fully subscribed earlier or the offer is extended. Bonds are allotted 14
days after close and investors start to accrue interest from that
date.
Capital at risk warning
Past performance is
not an indication of future performance. Capital is at risk and returns are not
guaranteed. Investors should read the offer document in full, including the
risks section, before deciding whether to invest.
Invest in a charitable affordable childcare provider
We believe that the right early childhood education in the highest quality nurseries can support children to achieve their full potential. However, the sad reality is that many children from disadvantaged backgrounds or families struggling with poverty are unable to access an affordable nursery and benefit from high-quality education. That is why the essential financing raised through this bond offer will enable us to significantly increase our social impact by opening more nurseries in areas of London that need us most.
June O’Sullivan MBE, Chief Executive of LEYF
London Early Years Foundation
London Early Years Foundation (‘LEYF’) is a charitable social enterprise that provides high quality early years education to children across London. Its cross-subsidy model means that it can operate nurseries in areas that would not be attractive to for-profit nursery providers. The charity runs 39 nurseries across 12 boroughs in London including in some of the city’s most deprived wards.
The first five years of a child's life profoundly shape their future life outcomes, especially for those from disadvantaged backgrounds. Early years education and care is vital to building a solid and broad foundation for lifelong learning.
LEYF has grown significantly over the last 15 years and is now one of the country's leading social enterprises. In 2021, LEYF generated annual income of c. £22 million.
The bond offer
LEYF is seeking to raise £1.5 million as a first step in its long-term strategy that would more than double LEYF's existing portfolio. It will invest the money into new leasehold and freehold nurseries across the city.
IFISA eligible
LEYF bonds are eligible to be held in a Triodos Innovative Finance ISA (IFISA). As with all ISAs, there are eligibility criteria and you receive interest tax-free. ISA eligibility does not guarantee returns or protect consumers from losing their money.
To invest in LEYF bonds through a Triodos IFISA, select the ‘Invest through IFISA’ option. This selection will add to your current year IFISA or will open a new IFISA if you haven’t previously opened one.
Transferring an existing ISA
If you want to invest by transferring an existing ISA to a Triodos IFISA you must first request the transfer. You can do this under ‘Account’ once you’ve become a registered user of the platform. Your ISA
Key terms
Issuer
London Early Years Foundation
Target amount
£1,500,000
Term
7 years, repayable on 31 May 2029
Minimum investment
£50
Interest
5% gross per year. Payable in arrears on 31 May each year (paid net of UK basic rate tax unless held in an IFISA). Payment of interest and repayment of capital are not guaranteed.
Gift interest
Although the standard interest rate is 5%, investors will be given the option to select 0% or 2.5% interest rate should they wish to forego part or all of their interest for the term of the bond.
Early repayment
LEYF has the right to repay the bonds without penalty from 31 May 2025.
Unsecured
The bonds are unsecured, which means that bondholders will rank equally with LEYF’s other unsecured creditors and behind secured and preferential creditors on insolvency.
Covenants
A gearing covenant, which places a limit on the Charity’s total borrowings. A breach of this covenant triggers a higher rate of interest for the period of the breach. Two consecutive breaches would be an event of default.
Transferability
Bonds are transferable but are not listed on any investment exchange which means that bondholders will have to find a willing buyer and agree a purchase price with them, which in practice may not be easy. Investors should be prepared to hold the bonds for their full seven-year term.
Minimum raise
£750,000. If less than £750,000 is raised, monies will be returned to investors with no accrued interest.
Timetable
Closes on 29 July 2022, unless fully subscribed earlier or the offer is extended. Bonds are allotted 14 days after close and investors start to accrue interest from that date.
Capital at risk - warning
Past performance is not an indication of future performance. Capital is at risk and returns are not guaranteed. Investors should read the offer document in full, including the risks section, before deciding whether to invest.
Please note that payment of interest and capital is not guaranteed and is dependent on the continued successful operation of London Early Years Foundation
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Investments offered on this platform are not readily
realisable, which means that they may be difficult to sell and you may not get
back the full amount invested. Investments are not covered by the Financial
Services Compensation Scheme (FSCS) and your capital is at risk and returns are
not guaranteed. Repayment of capital and interest or payment of dividends will
be dependent on the success of the organisation's business model and past performance isn’t a
reliable indicator of future performance. You should
always read the offer document in full before deciding whether or not to invest as it
will cover risks specific to an individual investment. You can read more about
the general risks associated with making these types of investments. If
you are unsure if any of these investments are right for you, you should
contact an Independent Financial Adviser.
Triodos Bank UK Ltd. Registered Office: Deanery Road, Bristol, BS1 5AS. Registered in England and Wales No. 11379025. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 817008.
