Charitable Bonds Programme: evaluation

6 Oct 2026 11:55 AM

An independent evaluation of the Charitable Bonds Programme prepared for the Scottish Government by Indigo House.

Introduction and background

Purpose of the report

Indigo House was commissioned by the Scottish Government “Scottish Government” to provide an evaluation of the Charitable Bonds Programme. The programme is currently delivered by Allia C&C Limited “Allia” and is due to expire in November 2026. This report sets out our findings.

Scope of the evaluation and methodology

The evaluation has focused on the overall value of the Charitable Bond programme to the public purse, the affordable homes delivered for the investment and the wider socio-economic benefits achieved.

We also reviewed the:

• operation of the programme including an assessment of fees and how this impacts value for money; and
• what the Charitable Bonds loan financing offers to Registered Social Landlords (“RSLs”) as a financing option, what it displaces (if anything) in terms of private finance and, where possible, the benefits and disbenefits of Charitable Bonds financing compared with other forms of commercially available private finance; and the implications of Charitable Bonds loan financing for RSLs' overall lending portfolio e.g. headroom on assets.

Whilst we have reported the findings at the overall programme level, the analysis is derived from a review of the financial data for each of the individual projects funded, the detail of which is set out in a supporting MS Excel file shared with Scottish Government.

In undertaking the evaluation, we:

• Met and liaised with Scottish Government and with Allia. We also met with a number of RSL borrowers and conducted structured interviews to hear their experience of the Charitable Bond programme.
• Undertook a desk top review of relevant documentation from Scottish Government and from Allia. This included the current contract, fund financial information and data at individual project level. This information was reviewed in detail alongside external data published on RSL funding and relevant affordable housing sector level data for Scotland.
• Modelled and assessed the financial performance of the Charitable Bond programme. This enabled a comprehensive assessment of the financial strength and performance of the bonds under various conditions in the short, medium and longer term. The MS Excel file provided under separate cover provides detailed assessment and allows further analysis to be undertaken.

Limitations

The report has been prepared on the specific instructions of the Scottish Government for the sole purposes set out in our contract and for the sole use of the Scottish Government. In carrying out our work and preparing our report we have worked solely on the instructions of our client. Third parties may choose to make use of this report entirely at their own risk. Indigo House and the Scottish Government shall have no responsibility in relation to any such use, and we assume no responsibility or liability to any third party in respect of the contents of the report.

Other than general reasonableness checks the Indigo House Group has not sought to verify the accuracy of the data, information and explanations provided as part of the evaluation as would be the case during an audit or due diligence exercise. Reliance has therefore been placed on the information supplied, which has been used to inform our analysis.

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