LendInvest has listed a £50m retail bond on the London Stock Exchange’s order book for retail bonds (ORB).
The process to raise LendInvest’s first retail bond was closed early and oversubscribed, thanks to strong demand from retail and institutional investors. About half of the proceeds raised came from major financial institutions including several multi-billion pound asset managers, two global insurance businesses and a major UK state pension fund.
The bond pays a fixed annual coupon of 5.25% for five years, and is secured against a portfolio of property loans and guaranteed by LendInvest.
From 10 August 2017 onwards, the bond will trade under the LSE ticker LIV1.
This retail bond is the first to be issued by a fintech business.
It comprises a key fourth funding channel for LendInvest, alongside the company’s online investment platform, its funds management group, and a number of dedicated institutional funding lines.
Christian Faes, co-founder & chief executive of LendInvest, said: “Listing our bond on the London Stock Exchange today marks a significant achievement for LendInvest, and adds considerable strength to our lending platform. At LendInvest we aspire to be an alternative lender that continues to innovate, not just in terms of the technology we are building, but in all aspects of our business.
“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. However, whilst the bond was popular with retail investors, some of the City’s largest institutional investors also made significant investments.
The retail bond is the first in a £500 million bond programme that LendInvest intends to offer to its investment customers over the coming years.
The bond was issued by LendInvest Secured Income Plc, a wholly-owned subsidiary of LendInvest created for the purpose of launching the bonds.
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