Nottinghamshire YMCA
Nottinghamshire YMCA (NYMCA) is a 149-year-old charity with a passionate belief that everyone should be given opportunities to reach their full potential.
NYMCA’s services include provision of supported and move on accommodation, residential settled care homes for young people, homeless hostels, a non-profit gym and numerous children, youth and family programmes across Nottinghamshire and South Yorkshire.
NYMCA reaches over 18,000 individuals annually and 75% of revenue is derived from local authority contracts.
The bond offer
For several years NYMCA has been developing a £16.5m community and activity village in Newark-on-Trent in close partnership with the local authority. This exciting new development is a core element in the regeneration of Newark and will provide a range of accessible educational, health, leisure and community services to the town and its surrounding area.
The first £4m phase of sports pitches and facilities for the community and activity village was completed last year and following confirmation of a £2.2m capital grant from the regional Local Enterprise Partnership, NYMCA is now proceeding with the completion phase. The proceeds of this bond offer will be largely applied towards the project during 2021 and 2022. Combined with bank debt and capital grants, this will provide the funding required to complete the community and activity village.
IFISA eligible
Nottinghamshire YMCA bonds are eligible to held in a Triodos Innovative Finance ISA (IFISA). The IFISA is a type of ISA that allows you to hold crowdfunded debt securities such as this bond. 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 Nottinghamshire YMCA 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
Nottinghamshire YMCA (NYMCA)
Term
6 years, repayment due on 28 February 2027
Interest
6% gross per year payable on 28 February each year (paid net of UK basic rate tax unless held in an IFISA) with the first payment on 28 February 2022. Payment of interest and repayment of capital are not guaranteed.
Gifting of interest
Although the standard interest rate is 6%, investors will be given the option to select a 0% or 3% interest rate should they wish to gift part or all of the interest to NYMCA.
Early repayment
NYMCA has the right to repay the bonds in part or in full with effect from 28 February 2023.
Unsecured
The bonds are unsecured so bondholders will rank equally with NYMCA’s other unsecured creditors and behind secured and preferential creditors on insolvency.
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 6-year term.
Minimum raise
£3 million. If less than £3 million is raised, monies will be returned to investors with no accrued interest.
Timetable
Closes on 21 December 2020, unless fully subscribed earlier or offer is extended. Bonds are allotted 15 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.
