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.