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Nuffield Health launches 6% mini-bond

Joanna Faith
Written By:
Joanna Faith

Nuffield Health, the not-for-profit health and wellbeing services provider, is launching a mini-bond, promising investors annual returns of 6% in cash.

The Nuffield Health Bond, a five-year fixed term product, will accept investments of between £1,000 and £250,000.

The company is aiming to raise £15m to help fund investment in joined up healthcare services across the country focusing on prevention, fitness and wellbeing as well as cure.

Nuffield Health’s underlying earnings increased by 21% over the last two years, against a virtually flat GDP over the same period.

David Mobbs, group chief executive of Nuffield Health, said: “We are proud we are continuing to offer choice and innovate so we can provide high quality, integrated health services for people in a way which is meaningful for them. By fully integrating treatment with prevention, we offer people a highly personalised healthcare programme. From diagnosis through to diet, it amounts to a continuous cycle of care that Nuffield Health is committed to delivering.

“The funds raised by the Bond will help us further develop our unique service so not only will you be getting a competitive return, you will also be helping us raise money to achieve our mission of making a real difference to the future of healthcare in this country.”

Unlike retail bonds, corporate bonds and gilts, which can be bought and sold on the London Stock Exchange, mini-bonds are unlisted products, meaning they cannot be traded.

Several well-known names including John Lewis, King of Shaves and the Jockey Club have already issued mini-bonds at a time when raising capital from the banks is still proving challenging.

The market is predicted to surge in 2013 from under £90m last year to £1bn by the end of this year, according to Capita Registrars.

Justin Cooper, Capita Registrars’ chief executive, said: “Mini-bonds are going mainstream. With consumers seeing better return on investment potential than they would through a bank account, as well as extra benefits, we are expecting to see large growth in the market in the coming years. By 2017, we expect the market to reach £8bn.”

Investors should remember that unlike with a savings account, there is no deposit protection on a mini-bond, so there is a risk of loss.

Applications for the Nuffield Health Bond are due to close on 18 June and will be considered on a first come, first served basis.