Quoted, SIPP-Wrapped Bond Issue Inbound

By Ryan Weeks on 22nd January 2015

P2P/Marketplace Lending

UK Bond Network has become the latest platform to partner up with the prolific SIPPclub, but that’s not the only exciting aspect of its next investment opportunity.

Quoted, SIPP-Wrapped Bond Issue Inbound

The unique SME finance provider has indicated that its next bond issue will be quoted and tradable on a recognized Stock Exchange. It is for that reason that the opportunity will be eligible for investment via SIPPclub’s EvolutionSIPP product. Considerable demand for SIPP-sheltered investment opportunities acted as the impetus behind the move. UKBN is also midway through a consultation with the SIPP operator around opening up the full range of its products – including unquoted bonds – to SIPP eligibility.

The EvolutionSIPP now allows investors to fund deals via the UKBN, ThinCats, Assetz, rebuildingsociety and Proplend platforms – not to mention a host of other HMRC approved assets. UKBN has suggested that coupons on bonds originated via the platform tend to yield c.10%, and expects significant demand for its first tax-sheltered opportunity.

UKBN has not divulged the specifics of the impending quoted bond, but has indicated that it will seek to raise between £1m and £3m. The platform has also suggested that investment in the issue via the EvolutionSIPP will be better suited to large investors. SIPP service costs – around £1k – are high enough to offset the product’s tax benefits if only a small amount is invested (£5k, for instance). For that reason the bond makes much more sense for investors who are looking to allocate large chunks of money at a time. 

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