Provide medical aid for Pakistan with a charitable bond

Every £1 invested will allow £5 of medicines to be sent to Pakistan to save lives of the poor without access to lifesaving medicines.

The Need

Following the floods, over 100 health facilities were destroyed across Pakistan, with the worst affected areas being in Punjab and Sindh. The health system was not only severely damaged, but the floods highlighted the huge needs among the poor for the most basic health care. There is a particular need to improve the provision of specialist medical care in Maternal and Child Health. International Health Partners is working in partnership with Allia to raise £10 million of investment through charitable bonds which will:

• provide over 5 million treatments to individuals who presently are too poor to access medicines;
• establish the first 5 public neonatal screening centres in Pakistan in major reference hospitals to screen the 50,000 babies most at risk each year – a service we take for granted in the West;
• establish 5 specialist obstetric surgical centres in another 5 reference hospitals to treat women who need specialist surgery following complications in labour;
• provide training in medicine handling and supply chain management in the main reference hospitals in Punjab and Sindh Provinces; and
• pay for the sourcing, transport, and safe distribution of £50million of donated medicines.

The Investment Opportunity

Allia’s charitable bonds are a unique way of raising funds for charitable causes through a safe social investment. Investors in the bonds receive their money back in full after five years, while International Health Partners receives an up-front, tax free grant which will enable medical aid to be sent to those in need in Pakistan.

Key features:

• Bonds issued by Allia, a national charity with over ten years’ experience
• A five-year secure investment (with recourse to Moody’s AA rated asset)
• Capital returned in full at par on 5th anniversary
• The philanthropic return equates to 500% of the capital invested – for each £1 invested, £5 in medicines will be sent to those in need in Pakistan in addition to the establishment of new maternal & child health.
• A Sharia-compliant Sukuk alternative is in development – please contact us if you would require this option.

Next steps

To find out more about the work of International Health Partners and this investment opportunity, please contact Anthony Dunnett, at a.dunnett@ihpuk.org or George Rocke at g.rocke@ihpuk.org For full terms of the charitable bond offer and to make an investment, please go to www.allia.org.uk/IHP

Details of the Bond Promoters

International Health Partners

IHP is the UK’s sole coordinator of donated medicines, set up with the support of the UK Government, the medical community, international medical NGOs and the pharmaceutical industry. IHP is a UK registered charity (No 1105455) and HRH The Prince of Wales is the Patron – www.ihpuk.org

IHP became operational in early 2005 following the Asian Tsunami and in its first 6½ years to 30 June 2011, IHP has donated over £83m in first quality medicines to 80 countries. Over 140 companies donate their products and services to IHP including 17 of the top 20 global pharmaceutical companies, all the major European generic companies and many other UK household names – DHL, British Airways, Virgin Atlantic, Thomas Cook, Boots, Tesco, Morrison, etc.

IHP’s programme in Pakistan will be undertaken in partnership with the World Health Organisation, the Department of Health of the Punjab Government, the Pakistan Pharmacists Association and the British Asian Trust.

Allia

Allia is a charitable organisation established in 1999 with the name Citylife to support causes that give people a better future and to raise funds for projects in different cities working to tackle unemployment and disadvantage. Its unique charitable bond mechanism provides a way of raising more money for philanthropic projects than could have been the case through donations alone. Allia has raised bonds for East London, Sheffield, and a large number of UK charities.

Allia Ltd is a community benefit society registered with the Financial Services Authority (No. 28861R), recognised by HM Revenue and Customs as a charity (No. XR29468) and governed by independent trustees. As such Allia is permitted to offer and issue certain bonds to the public in the United Kingdom based on the exemption under the Financial Services and Markets Act (section 85(5) and Schedule 11A).

For further details about Allia and charitable bond offers, please visit www.allia.org.uk

Bond Operational Details

Allia will act as the recipient of the investor funding and provide this over a 5 year fixed period to a UK Registered Social Landlord (likely Places for People) with a Moody’s AA rating.

• The RSL will commit to provide a return on the investment made by Allia in one of two ways:

        Sukuk – by way of rental payments on properties that have been assigned to Allia; or

        Bond – by way of interest payments.

• Allia will discount the flow of the rental/interest payments due over the 5 years and provide IHP with an upfront payment.
• The RSL will be provided with the net proceeds of the investment (initial principal less discounted return) and undertake to repay 100% of the initial sukot/Bond capital on the 5th anniversary.
• IHP will put the discounted payment in a restricted funds account and drawdown from the account to meet the operational costs of donating the medicines and establishing the various specialist maternal and child care facilities in Pakistan.