Fintech tie-up: SyndicateRoom to offer LendInvest bond to investors

By Ryan Weeks on Thursday 27 July 2017

Alternative LendingSavings and Investment

Equity crowdfunding platform SyndicateRoom will help to market LendInvest’s new retail bond offering.

Equity crowdfunding platform SyndicateRoom will help to market LendInvest’s new retail bond offering.

SyndicateRoom is giving its membership the opportunity to invest in real estate lending platform LendInvest’s newly launched retail bond. The bond pays a fixed rate of 5.25 per cent, due 2022, underpinned by buy-to-let mortgages and development loans. It is targeting an initial raise of £50m, and carries a minimum investment requirement of £2,000.

SyndicateRoom is one of seven authorised offerors of the bond, alongside such firms as Barclays and Equiniti (SelfTrade). But SyndicateRoom is the only offeror on the roster that might be described an alternative finance firm.

SyndicateRoom has been steadily diversifying the range of investments that it makes available to its users, with a particular focus on opening up access to public listings. Its bread-and-butter is to facilitate early-stage equity investment – always with an experienced angel investor leading the charge.

“This is a particularly exciting deal for us, as it’s the first time we’ve offered our members access to a retail bond and is the latest example of SyndicateRoom paving the way for private investors into the public markets,” said Tom Britton, co-founder of SyndicateRoom.

“By giving our members access to yet another type of offering we’re allowing our investors further opportunity to diversify their portfolios. The announcement also adds to our vision of connecting our members with great businesses – and as a leading fintech company which aims to provide borrowers with a better experience in a tough lending environment, LendInvest is an ideal fit.”

LendInvest’s retail bond will be listed on the London Stock Exchange. SyndicateRoom acquired intermediary status with the London Stock Exchange in March 2016. LendInvest boss Christian Faes said that SyndicateRoom’s partnership with the London Stock Exchange made it “a natural fit”.

LendInvest recently closed its peer-to-peer lending platform to retail investors; the newly launched bond thus becomes the only channel through which retail investors can gain access to its loans.

The bond offer will close on SyndicateRoom’s platform on 2 August at midnight, while the total offer period is expected to close 4 August at noon.

You can find out more about the bond listing by reading David Stevenson’s column: Is new retail bond from LendInvest a buy? 

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.

AltFi's new weekly US newsletter breaking down the ins and outs of America's burgeoning fintech sector. Delivered Monday 9am EST/ 6am PST.