LendInvest, a UK based online marketplace platform for property finance, has announced a proposed issuance of 5.375% fixed rate bonds due October 2023 by its wholly-owned subsidiary, LendInvest Secured Income plc.
Christian Faes, Co-founder and CEO of LendInvest Limited, said they were delighted to return to the bond market so soon after the first successful issuance of bonds in August 2017 that were over-subscribed.
“Our marketplace platform provides access to our loans to an extremely wide universe of investors, and our retail bonds make up an important channel for both retail and institutional investors alike. LendInvest provides investors with the opportunity to invest in a portfolio of loans that are all secured by property, at conservative LTV’s, and backed by an unrivaled 10-year track record,” said Faes. “Banks and other traditional lenders continue to retrench from property lending, constrained by increasing capital adequacy requirements and other limiting factors. This scenario shows no sign of changing and exacerbates the lack of capital available to professional property investors and developers trying to run their businesses around the country. The door is open for alternative lenders, like LendInvest, to be highly competitive in this space.”
LendInvest’s first bond issuance is trading on the LSE (LIV1) and was issued in August 2017 after raising £50 million from both retail and institutional investors. This new issuance is expected to trade on the LSE as well.
The net proceeds of bond will be used by LendInvest to fund the origination and / or purchase of bridging and buy-to-let loans which satisfy defined eligibility criteria.
According to the company, payments under the Bonds will be guaranteed by LendInvest and the bonds will be secured by way of a floating charge over all of the over the whole of the undertaking and all property, assets and rights, both present and future, of the Issuer. The bonds are expected to be ISA and SIPP eligible.
Additionally, at any time during the life of the Bond, investors are permitted to trade the Bonds through their stockbroker.
LendInvest is an interesting Fintech platform that created a professional marketplace to finance property development in the robust UK market. LendInvest believes it is filling a funding gap in the UK’s mortgage market, while innovating to bring faster finance to borrowers and a uniquely competitive investment opportunity for the wide investor community.
In its latest financial report for the six months to 30 September 2017, LendInvest reported gross revenue growth (up 45% year-on-year to £15 million) and continued profitability.
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