LendInvest, an online platform for property lending and investing, has listed a GBP50 million retail bond on the London Stock Exchange’s Order book for Retail Bonds (ORB).
The process to raise LendInvest’s first retail bond was closed early and oversubscribed, thanks to strong demand from retail and institutional investors. About half of the proceeds raised came from major financial institutions including several multi-billion pound asset managers, two global insurance businesses and a major UK state pension fund.
The bond pays a fixed annual coupon of 5.25 per cent for five years, and is secured against a portfolio of property loans and guaranteed by LendInvest. From today, the bond trades under the LSE ticker LIV1.
LendInvest 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. The retail bond is the first to be issued by a FinTech business. It constitutes a key fourth funding channel for LendInvest, alongside the company’s online investment platform, its funds management group, and a number of dedicated institutional funding lines.
Christian Faes (pictured), Co-Founder & CEO of LendInvest, says: “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 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.”
The bond’s admission to the ORB – the first maiden retail bond launch since the Brexit vote last year – was celebrated by London Stock Exchange and LendInvest staff this morning during a market open ceremony hosted by Robert Barnes, the LSE’s Global Head of Primary Markets and CEO of Turquoise.
The retail bond is the first in a GBP500 million bond programme that LendInvest intends to offer to its investment customers over the coming years. The bond was issued by LendInvest Secured Income Plc, a wholly-owned subsidiary of LendInvest created for the purpose of launching the bonds.
Faes adds: “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 the LSE over the next few years as our retail bond programme rolls out.”