LendInvest launches second retail bond offer

LendInvest Limited has launched a second retail bond offer which will raise finance to fund the origination and/or purchase of bridging and buy-to-let loans.

The online platform for property finance has issued a five-and-a-half year 5.375% fixed rate retail bond due October 2023.

Payments under the bond will be guaranteed by LendInvest and the bond will be secured by way of a floating charge over the whole of the undertaking and all property, assets and rights, both present and future, of the issuer.

At the time of issue, the bond should – subject to any applicable limits – be eligible for investing in a stocks and shares Isa or self-invested personal pension (SIPP).

Christian Faes, co-founder and CEO of LendInvest (pictured above), said it was delighted to be coming back to the bond market so soon after the issue of its first oversubscribed bond in August 2017.

“Our marketplace platform provides access to our loans to an extremely wide universe of investors, and our retail bonds make up an important channel for both retail and institutional investors alike.

“LendInvest provides investors with the opportunity to invest in a portfolio of loans that are all secured by property – at conservative LTVs – and backed by an unrivalled 10-year track record.”

LendInvest’s first retail bond – which trades on the London Stock Exchange – raised £50m from a broad base of retail and institutional investors.

As of 31st December 2017, the bond was 99.6% utilised, with an interest coverage ratio of 192% and a weighted average LTV ratio of 57%.

“Banks and other traditional lenders continue to retrench from property lending, constrained by increasing capital adequacy requirements and other limiting factors,” added Christian.

“This scenario shows no sign of changing and exacerbates the lack of capital available to professional property investors and developers trying to run their businesses around the country.

“The door is open for alternative lenders, like LendInvest, to be highly competitive in this space.”

The new bonds have a minimum initial subscription amount of £2,000 and are available in multiples of £100 thereafter.

The offer period opened on 15th March 2018 and is expected to close at or before 12noon GMT on 29th March 2018.

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