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LendInvest returns to retail bond market with second proposed issue

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LendInvest Limited, an online marketplace platform for property finance, has announced the proposed issue of sterling-denominated 5.375 per cent Fixed Rate Notes due October 2023 (the “Bonds” or “retail bond”) by its wholly-owned subsidiary, LendInvest Secured Income plc (the “Issuer”).

Payments under the Bonds will be guaranteed by LendInvest and the Bonds 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 Bonds should, subject to any applicable limits, be eligible for investing in a stocks and shares ISA (Individual Savings Account) or SIPP (Self-Invested Personal Pension).
 
At any time during the life of the Bond, investors are permitted to trade the Bonds (within market hours and in normal market conditions) on the open market through their stockbroker.
 
LendInvest operates a distinctive FinTech marketplace platform that brings together professional property investors seeking fast and flexible mortgage finance, with all types of investors – from retail investors through to some of the world’s largest financial institutions – looking for investment opportunities in the UK property finance market. Leveraging its ten-year track record of lending, proprietary technology, and deep market experience, LendInvest believes it is filling a funding gap in the UK’s mortgage market, while innovating to bring faster finance to borrowers and a uniquely competitive investment opportunity for the wide investor community.
 
In its latest financial report for the six months to 30 September 2017, LendInvest reported gross revenue growth (up 45 per cent year-on-year to GBP15 million) and continued profitability while investing heavily in technology and people to support the business’ growth.
 
Christian Faes, Co-founder and CEO of LendInvest Limited, says: “We are delighted to be coming back to the market so soon after the successful issue of our 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 LTV’s, and backed by an unrivalled 10-year track record.
 
“Banks and other traditional lenders continue to retrench from property lending, constrained by increasing capital adequacy requirements and other limiting factors. 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.”
 
This is the second issue of Bonds that LendInvest has brought to market. LendInvest’s first retail bond, which trades on the London Stock Exchange’s regulated market under the ticker LIV1, was issued in August 2017 after raising GBP50 million from a broad base of retail and institutional investors. As at 31 December 2017, LendInvest’s first bond was 99.6 per cent utilised, with an interest coverage ratio of 192 per cent and a weighted average loan-to-value ratio of 57 per cent.
 
The net proceeds of Bond issues are used by LendInvest to fund the origination and/or purchase of bridging and buy-to-let loans which satisfy defined eligibility criteria.
 
The new Bonds will bear interest from and including the date of issue at a fixed rate of 5.375 per cent per annum, payable semi-annually in arrear in equal instalments of GBP2.6875 per GBP100 in principal amount of the Bonds on 6 April and 6 October each year. The Bonds have a minimum initial subscription amount of GBP2,000 and are available in multiples of GBP100 thereafter. The offer period opened on 15 March 2018 and is expected to close at or before 12 noon GMT on 29 March 2018. The Lead Manager retains the right to close the offer early, in conjunction with the Issuer and LendInvest.
 
The Bonds are expected to be listed on the UK Listing Authority’s Official List and admitted to trading on the London Stock Exchange’s regulated market and through the electronic Order Book for Retail Bonds.
 
Peel Hunt LLP is acting as Lead Manager on this issue.

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