GLI Finance (LSE:GLIF), an alternative finance platforms investor that provide loans to small and medium sized enterprises (SMEs), has announced that it is giving its shareholders and other eligible investors access to bonds being issued to be used as consideration for an acquisition. The company is making an issue of £10M of bonds which will be used as part consideration for the acquisition of Sancus Gibraltar, a specialist SME lender which is already part-owned by GLI. The bonds to be issued in connection with the Sancus Gibraltar acquisition are to be listed on a recognised Stock Exchange and are to be tradeable on the platform of UK Bond Network Limited, one of GLI’s platform investments. The company has the ability to further ‘tap’ this bond issue to fuel further growth.
“In our perennially low interest rate environment, investors are searching for yield. Opportunities such as this enable them to access higher yield from a known and established counterparty in GLI Finance,” UK Bond Network CEO and Founder Chris Maule exacted. “As many self-directed investors will know, accessing transactions can be extremely difficult and is often limited to institutional investors. However, rather than miss out, shareholders and other eligible investors have the ability to participate in this issue through our easy to use online platform.”
The company believes that this transaction, alongside the acquisition of BMS Group, will simplify GLI’s group structure, drive operational and financial efficiencies, and better position it for the further development and expansion of its niche lending businesses and platform portfolio.
“We look forward to partnering with UK Bond Network on the issuance of an additional £4m of bonds, which will be used to fuel GLI Finance’s growth,” GLI CEO Andrew Whelan commented.
An additional £4m of bonds are also being made available to the company’s shareholders, as well as other eligible investors on the UK Bond Network platform, which will be facilitating the issue. The bond issuance aims to provide investors with an additional yield opportunity within the alternative finance sector, and the AIM listed category. The bonds will pay 7% gross per annum, with semi-annual payments of interest, and will mature in five years.