Fintech lender LendInvest to launch retail bond offering

Property lending platform will launch bond shortly after closing to P2P investors.

Property lending platform to launch bond shortly after closing to P2P investors.

LendInvest, a leading alternative lender in the property space, is launching a retail bond. The bond will offer investors a fixed rate of 5.25 per cent, due 2022.

It is expected to be listed on the London Stock Exchange once the subscription period closes. LendInvest is targeting an initial raise of £50m, and the company expects this to be the first of a number of bond issues over the coming years. The bond has a minimum investment amount of £2,000.

Interest from the bond will be paid semi-annually on 10 February and 10 August each year. The net proceeds will be used to fund the origination and/or purchase of loans which satisfy the company’s eligibility criteria. LendInvest specialises in bridging finance and buy-to-let loans.

LendInvest’s wholly-owned subsidiary LendInvest Secured Income plc is the issuer and was originally set up October 2016. LendInvest Limited is the guarantor of the bond. The bond will be secured by a floating charge over all property, assets and rights of the issuing entity.

This is the newest capital source in a diverse mix of funding sources managed by LendInvest. Its fund management and advisory arm LendInvest Capital oversees two funds, and the company also has four funding lines facilitated by a number of institutional investors, including Macquarie Group and leading UK challenger bank OneSavings Bank. The firm also operates an investment portal for high net worth and sophisticated individual investors.

This last source of funding was until recently open to retail investors, but the platform shifted away from that model in May of this year. Its newly launched retail bond looks to be a direct replacement.

“As we continue to scale the business, we’re increasingly looking to diversify our funding model and expand our capacity to lend to underserved borrowers, as well as to create new entry points to an attractive asset class that suits a broader range of investors seeking competitive risk-adjusted returns,” said Christian Faes (pictured), co-founder and CEO of LendInvest. “The launch of this Bond allows us to achieve both of these ambitions, supporting future growth goals.”

Peel Hunt LLP is acting as Arranger and Dealer on the bond issue, with Simmons and Simmons LLP acting as advisor to LendInvest.