What is a Citylife Bond?
Citylife issues zero coupon Bonds to those who are prepared to forego capital growth and interest income on their money, but who are guaranteed it back after five years. Bonds put the interest, from individuals', businesses' and grant makers' investments, to make a difference in local communities: tackling disadvantage and regenerating social, economic and intellectual capital.
The Bond is a unique mechanism where Citylife returns 100% of the money in five years time. It is held under trust and investors have a bank guaranteed return of their investment.
To get the money to work, Citylife loans some of the money to not-for-profit developers (such as housing association Places for People) who invest it to build or renovate properties for community benefit.
This 5-year loan is then paid back by with compound interest, which enables Citylife to return all the original investments that private individuals and businesses have made. The balance is used to fund local projects tackling unemployment, financial inclusion, skills training, crime and so on.
Who can invest in a Bond?
Citylife Bonds can be bought by private individuals, companies and local authorities. For companies a Bond is an attractive Corporate Social Responsibility action as the investment remains on the company’s balance sheet and does not affect the profit and loss account.
For other Citylife Bonds, we have had several local authorities invest, often as part of a specific social enterprise, community or employment strategy. Again, it is an attractive option to local authorities who can utilise their budget underspend.
If you have any questions about investing please get in touch with us via + 44 (0)1223 488400 or email
admin@citylifeltd.org
Can I get my money back from a Bond?
Yes. You are guaranteed your money back in full at the end of the agreed term (usually five years).
Can I apply for Gift Aid against a Bond?
No – not unless you make a gift of part or all of it at the end of the agreed term.
Can I use my CAF account?
Yes, just make a CAF cheque payable to Citylife Ltd for the amount for which you wish to buy a Bond. If you need any information on CAF accounts, go to
www.allaboutgiving.org. Your CAF account will be refunded after five years.
What happens to my Bonds if I die?
The Bond(s) cannot be cashed in early but can be transferred to another beneficiary on presentation of the relevant legal documentation. Alternatively Bondholders can elect that the value of their Bond should revert to Citylife as a legacy.
How is buying a Bond online secure?
Online purchasing of a Citylife Bond is extremely secure and is managed by HSBC secure e-payments. Upon receipt of your purchase, we will send you a form to check over and sign e.g. we will ask you to confirm the name you would like to appear on the Bond certificate once issued.
