LendInvest bond lists on London Stock Exchange after oversubscribed raise

By Ryan Weeks on Thursday 10 August 2017

Alternative Lending

Property lending platform has successfully closed its £50m retail bond.

Property lending platform has successfully closed its £50m retail bond.

LendInvest’s new route to retail money seems to be panning out. The platform’s £50m retail bond, which it launched in late July, has closed early. The oversubscribed issue attracted a range of retail and institutional investors, including several multi-billion pound asset managers, a pair of global insurance firms and UK state pension fund.

LendInvest is a fintech lending business focused on buy-to-let mortgages and bridging finance. The company was formerly thought of as a peer-to-peer lender, but shifted its focus away from P2P in May in order to focus its energies on institutional and sophisticated investors. In so doing, the business also withdrew from the Peer-to-Peer Finance Association.

Its retail bond, which has now been admitted to the London Stock Exchange’s order book for retail bonds (ORB), offers a fixed annual coupon of 5.25 per cent over a 5 year term. The bond is secured against a portfolio of property loans and guaranteed by LendInvest. It is now trading on the LSE under the ticker LIV1.

“We launched the bond programme to make our asset class available to retail investors through an LSE listed offering because it is a well-established, robust structure that offers customers considerable protections,” said Christian Faes, CEO of LendInvest. “However, whilst the bond was popular with retail investors, some of the City’s largest institutional investors also made significant investments.”

“For four years now, we have been able to grow our business, make major investments in people and technology, and be a consistently profitable business. This track record was key to giving retail bond investors the comfort and confidence that LendInvest is a financially viable and sustainable business, and one that they could trust with their investment.”

LendInvest’s bond is the first maiden retail bond to launch since last year’s Brexit vote. The company intends to roll out a £500m bond programme over the coming years.  

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