Invest in a charitable affordable childcare provider

Charity bond
London Early Years Foundation (‘LEYF’)
IFISA eligible
Minimum investment £50
Term 7 years
Interest 5% per year
£517,472
Raised
£1,500,000
Target
35%
£750k min. raise

London Early Years Foundation (‘LEYF’)

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 transfer must be completed first, before you make an application for bonds.

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 6 June 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

Sign up or login to view the offer

Sign up or login

London Early Years Foundation (‘LEYF’)

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 transfer must be completed first, before you make an application for bonds.

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 6 June 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