London Stock Exchange welcomes LendInvest Secured Income plc
London Stock Exchange today welcomed LendInvest, the UK's leading online platform for property lending and investing, as it issued a £50 million retail bond on the Order Book for Retail Bonds (ORB).
The process to raise LendInvest's first retail bond by LendInvest Secured Income Plc, a wholly-owned subsidiary of LendInvest, was closed early and oversubscribed, thanks to strong demand from retail and institutional investors for the five year 5.25% p.a. investment opportunity.
LendInvest is an established alternative finance platform that provides fast finance to property entrepreneurs and SMEs across the UK, and provides a platform for investors (from individuals through to large institutions) to invest in the mortgages it originates. As at 31 March 2017, LendInvest was managing and advising on over £410 million of facilities on behalf of investors. The Retail Bond programme constitutes a key fourth funding channel for the business, alongside the company’s online investment platform, its funds management group, and a number of dedicated institutional funding lines.
The retail bond, the first to be issued by a FinTech business, is the first in a £500 million bond programme that LendInvest intends to offer to its investment customers over the coming years.
Christian Faes, Co-Founder & CEO of LendInvest, commented:
"Listing our bond on the London Stock Exchange today marks a significant achievement for LendInvest, and adds considerable strength to our lending platform. At LendInvest we aspire to be an alternative lender that continues to innovate, not just in terms of the technology we are building, but in all aspects of our business.
"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. 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 significant investments in people and technology, and be a 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.
"The demand for our first retail bond shows the depth and breadth of investor appetite for income-generating investments that are secured. We look forward to returning to LSE over the next few years as our retail bond programme rolls out."
Peel Hunt was lead manager on the raise. Simmons & Simmons was the law firm acting on behalf of LendInvest; communications were managed by FTI Consulting.