LendInvest, the UK online platform for property lending and investing, has listed a £50m retail bond on the London Stock Exchange’s Order book for Retail Bonds (ORB).
High demand from retail and institutional investors meant that the process to raise LendInvest’s first retail bond was closed early and oversubscribed, with around half of the proceeds raised coming from major financial institutions, including several multi-billion pound asset managers, two global insurance businesses and a major UK state pension fund.
The bond, which trades under the LSE ticker LIV1, pays a fixed annual coupon of 5.25% for five years, and is secured against a portfolio of property loans and guaranteed by LendInvest.
LendInvest provides fast finance to property investors and SMEs across the UK, and provides a platform for investors – large and small - to invest in the mortgages it originates.
Christian Faes, co-founder and CEO 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.”