GWCU closes successful Bond Offer with over £1.4m

Our Bond Offer has officially closed after raising over £1.4m with 215 investors!

Today (19th July), Great Western Credit Union (GWCU) has announced the close of their first-ever Bond Offer raise, which amassed over £1.4m and 215 investors and surpassed the initial target of £800,000 by 76% since it launched in April 2023. Delivered via the Ethex investment platform, the successful raise aimed to make purpose-driven finance more accessible across the South West and it has received UK-wide backing showing the increased need for ethical, affordable and fair finance amidst the cost of living crisis. As the biggest credit union in the region, with over 18,000 members, funding will allow GWCU to increase their membership and services.

The raise saw a forecasted 6.5% return for investors. Fair4All Finance, a not-for-profit organisation aiming to make the financial services sector fairer for everyone, provided pound-for-pound match funding up to £1m.

With investment in place, the focus now turns to growth. Plans include building GWCU’s employer partnership scheme Money@Work, increasing further from the current 42,000 employees across 38 organisations with access to services directly from their payroll. The investment will also allow them to continue to develop their digital platform, which launched in 2020, with plans to upgrade capabilities and offer face-to-face services. Recognised as a leading fintech organisation in the South West, GWCU’s digital transformation has shown its ability to modernise after a shift to online banking.

James Berry, CEO of Great Western Credit Union, said:

“We have been overwhelmed with the support we have received since we launched the Bond Offer campaign in April. The credit union has continued to go from strength to strength and it’s heartening to have gained recognition from across the UK. This is a clear reflection of the increased need for alternative and affordable finance and we will now be able to further support tens of thousands more people across our region and to help revolutionise the way ethical services are accessed.”

Earlier this month, the credit union won highly commended in the Social Investment Award category at the Pioneers Post Natwest SE100 Awards for their Bond Offer raise with Ethex and Fair4All Finance. The award, which celebrates groundbreaking or innovative deals, programmes or funds in social/ impact investment, recognised GWCU’s entrance into the impact investment space. In addition, GWCU was also named one of the UK’s top 100 social enterprises as part of Natwest’s SE100 Index.

Holly Piper, Investment Director at Fair4All Finance, said:

"We are really proud to support Great Western Credit Union as they expand access to affordable loans and other services to people across the South West, and we are thrilled with how successful this bond offer raise has been – the first major raise of its kind by a credit union. We hope that this encourages investors and others to consider supporting credit unions and other community finance organisations in this way”

The three-month raise saw further recognition for GWCU as a leading community, fintech organisation, following nominations in the 'Best Credit Union' (South) and ‘Best Credit Union Loan Provider’ categories at the Credit Consumer Awards. GWCU was also a finalist for the ‘Fintech for Good’ prize, in partnership with Digital Wonderlab, at the Fintech Awards (South West). In June, the credit union launched their 2022 Social Impact Report, showing how GWCU is actively helping members across the region during the cost of living crisis.

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Posted on
19 July 2023