LendInvest raises £50m with first retail bond
LendInvest has raised a £50m retail bond on the London Stock Exchange.
Around half of the proceeds were raised from financial institutions, including two insurers and a UK public sector pension fund.
The bond pays a fixed annual coupon of 5.25% for five years, is secured against a portfolio of property loans and guaranteed by LendInvest.
LendInvest has raised a £50m retail bond on the London Stock Exchange.
Around half of the proceeds were raised from financial institutions, including two insurers and a UK public sector pension fund.
The bond pays a fixed annual coupon of 5.25% for five years, is secured against a portfolio of property loans and guaranteed by LendInvest.
The retail bond is the first in an intended £500m bond programme by the lender.
The bond was issued by LendInvest Secured Income, a wholly owned subsidiary of LendInvest created to launch the bonds.
LendInvest provides “fast finance” to property entrepreneurs and SMEs in the UK and provides a platform for investors to invest in the mortgages it originates.
The company also raises funds through its online investment platform, its funds management group and “a number of dedicated institutional funding lines”.
Christian Faes, co-founder and chief executive, said: “We launched the bond programme to make our asset class available to retail investors through an LSE-listed offering because it is a well-established, robust structure that offers customers considerable protections.
“The demand for our first retail bond shows the depth and breadth of investor appetite for income-generating investments that are secured.
“We look forward to returning to the LSE over the next few years as our retail bond programme rolls out.”
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