LendInvest has launched a new 8% sterling bond due in 2032, giving investors access to a portfolio of UK property loans while supporting the lender’s efforts to broaden funding sources.
LendInvest has launched a new series of 8.00% notes due in 2032 through its subsidiary, LendInvest Secured Income III plc, under the group’s £1bn Euro Medium Term Note Programme.
The issuance forms part of the specialist property lender’s strategy to expand access to property finance investments, an asset class traditionally dominated by institutional investors. The bonds carry a fixed coupon of 8.00% per annum, payable semi-annually, with an intended term of 6 years and redemption at par on maturity.
The bonds are secured against a pool of eligible UK property loans, including residential, buy-to-let, short-term and development finance lending originated and managed by LendInvest. The collateral pool is subject to lending criteria including a maximum weighted-average loan-to-value ratio of 77.5%. The bonds also benefit from a partial 20% guarantee from LendInvest plc.
The minimum investment is £1,000, with investors able to trade the bonds through stockbrokers following admission to the market. Applications will be made for admission to the Official List of the Financial Conduct Authority and trading on the London Stock Exchange’s main market.
LendInvest said the eligible loan portfolio is supported by underwriting and credit risk processes that have been applied across more than £9bn of property lending since 2008. In its most recent trading update, the group reported funds under management of £5.48bn and platform assets under management of £3.82bn.
Rod Lockhart, chief executive officer at LendInvest, said: “This issuance is further evidence of strong investor appetite for direct access to this asset class, and of our commitment to connecting that appetite with the developers and landlords who are building and refitting the homes the UK needs.”
Adrian Bell, chief executive officer at Allia C&C, added: “LendInvest has been a valued presence in the small-denomination bond market for nearly a decade, offering investors a well-positioned range of opportunities, supported by strong communication and consistent engagement with its wholesale and retail investor base. We are delighted to lead its sixth sterling bond issue.”