MBU Capital launches three-year 7% social bond that offers profit sharing and giving option

By Lisa Kerner

Charlotte, N.C., Dec. 1 – MBU Capital Ltd. launched its first global social bond which will be used to invest in community-focused real estate projects across the United Kingdom.

The bond offers a fixed 7% annual return over three years through maturity in December 2018.

In addition, subscribers will earn a 5% share of net profits from underlying investments and may direct another 5% of profits to their choice of a registered charity or NGO.

Projects benefiting from the bond include affordable housing, community regeneration and high-quality accommodations for students and the elderly, according to a news release.

MBU said the current active pipeline of its property investments and development projects is valued at more than £300 million.

“We don’t know anyone else in the market who has structured anything quite like this,” said MBU co-founder and chief executive officer Mohammed Iqbal.

The bond is “perfect for the socially minded individual who wants to see real investment in their local community infrastructure, and at the same time, likes the idea of directing profits to charities which matter to them,” Iqbal said.

“Based on our projections and our current deal pipeline, our social bond holders would see returns exceeding 27% over the lifetime of their social bond,” said Iqbal.

MBU is a London-based investment company.

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