The bond aims to provide opportunities in construction for more than 100 ex-offenders, offering investors a yearly fixed return of 4 per cent to 6 per cent.
According to figures from Midlands Together, more than 58 per cent of offenders re-offend within 12 months, costing the economy up to £13bn every year.
Midlands Together is aiming to buy properties and provide ex-offenders with jobs refurbishing them.