LendInvest to raise £50m with first retail bond

LendInvest has issued a £50m retail bond on the London Stock Exchange – a first for the lender.

The lender already has £50m of commitments from investors and interest was oversubscribed, bringing its assets to £500m.

The retail bond is the first in a £500m bond programme that LendInvest intends to roll out in the next few years as and when it requires additional capital.

Investors are earning 5.25% for five years secured against LendInvest’s mortgage portfolio.

Christian Faes, co-founder and chief executive of LendInvest, said: “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.”

This is the first maiden retail bond launch since the Brexit vote last year.

The bond was issued by LendInvest Secured Income Plc, a wholly-owned subsidiary of LendInvest created for the purpose of launching the bonds.

Faes added: “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.”

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