By Ryan Weeks on 4th August 2017
Peer-to-peer lender announces that George Banco will be acquired, and its outstanding balance repaid.
Peer-to-peer lender RateSetter announces that George Banco will be acquired, and its outstanding balance repaid.
The latest update on RateSetter’s former wholesale lending partners is in. Guarantor lender George Banco, in which RateSetter acquired a minority stake in May 2017, is set to be acquired by Non-Standard Finance plc, a listed consumer finance company.
Non-Standard Finance will be paying £53.5m for the acquisition. As part of the deal, all George Banco loans will be refinanced by Non-Standard Finance. RateSetter currently has around £30m of lending outstanding to George Banco, and expects this deal to result in its lenders being repaid in full in September 2017.
RateSetter is currently in the middle of a month-long window during which it will offer investors the chance to sell out of the platform without incurring early-exit fees. This offer was made in relation to the publication of new details on some of the platform’s former wholesale lending partners, one of which was George Banco. After acquiring a stake in the business in May, RateSetter’s intention had been to allow its investors to lend directly to George Banco's customers, but this plan has been discontinued.
An article in London South East suggests that George Banco’s total net loan book currently stands at around £30m, which would suggest that RateSetter is at present its sole creditor. The article also reveals that Non-Standard Finance has just secured £260m in debt funding, comprised of both a term loans and credit facilities. The investors include Alcentra Ltd and RBS.