Care homes There are more than 1.5 million over-85s in this country and the number is set to double by 2050. Living to a ripe old age is cause for celebration, but increasing years can bring frailty so demand for care homes is rising fast.
The Royal Masonic Benevolent Institution Care Company (RMBI) owns 17 care homes across England and Wales. A charity originally founded to help Freemasons and their families, RMBI homes are now open to anyone and more than 90 per cent are rated good or outstanding.
Chief executive Mark Lloyd, wants to do even better, renovating and rebuilding older properties to include state-of-the-art facilities for residents with Alzheimer’s and other conditions.
Helping hand: RMBI owns 17 care homes across England and Wales and has a long and proud history
Lloyd is hoping to fund these improvements through a £10 million, six-year bond transaction, paying annual interest of 6.25 per cent. Interest payments, known as coupons, will be made twice a year and the £10 million will be repaid in March 2029.
In the interim, bondholders will be able to buy and sell their securities via the London Stock Exchange bond market, much like shares. The minimum subscription is £500 and bonds will be available via intermediaries including Hargreaves Lansdown, AJ Bell, Interactive Investor and Redmayne Bentley.
RMBI has been providing care since Victorian times. As a charity, the group is able to plough profits back into the business so Lloyd can focus on both his assets and his people. That means staff tend to be better paid and stay longer than employees from rival institutions, a key benefit for residents and their families.
Care is offered to more than 1,000 people and the average age of new residents is 92. RMBI owns its homes outright, collectively valued at almost £90 million. The group is a subsidiary of the Masonic Charitable Foundation, one of the largest grant-giving charities in the UK.
RMBI operates independently of its parent but the link between the two provides an extra security blanket should one be needed.
Midas verdict: RMBI has a long and proud history, provides top quality care and benefits from a strong and robust parent. Offering annual income of 6.25 per cent, the bonds are a buy – and the funds raised will do good as well.
Traded on: Order book for retail bonds Ticker: RMBI Contact: rmbi.org.uk or 020 7596 2400
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