Honeycomb sells £44.6 million of loans to Tandem Bank

By Daniel Lanyon on Thursday 3 September 2020

Alternative LendingDigital Banking

The investment trust says it is also seeing nonbank lenders “tentatively” re-enter the lending market.

Honeycomb sells £44.6 million of loans to Tandem Bank
Image source: Ricky Knox, CEO of Tandem Bank

Listed lending fund Honeycomb has disposed of £44.6m of consumer unsecured whole loans to Tandem Bank in August, according to a stock market update. 

Honeycomb says the sale “is in line with the Company’s strategy of focusing on secured credit assets with first loss protection from the borrower.” 

Tandem Bank also acquired Allium Lending Group over this period with Honeycomb selling its equity stake and structured loan in ALG in exchange for equity in Tandem.  

The bank recently announced the closing of its latest £60m funding round, which in part funded the acquisition of Allium which it says will make the UK's first 'green' digital bank.

Honeycomb invests in a variety of different loans, mostly in the property sector, as well as providing funding lines to nonbank lenders. 

”We are also seeing nonbank lenders tentatively re-enter the lending market with restricted scorecards as the economy has started to re-open,” Honeycomb said in the same update.  

 

Sign up for our newsletters


Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.