LendInvest [LON:LINV] has returned to the sterling retail bond market with the launch of a new six-year secured note offering, seeking to capitalise on investor demand for income-generating alternatives amid a higher interest-rate environment.
The UK property finance platform announced last week that its subsidiary, LendInvest Secured Income III plc, is issuing a new series of 8 per cent fixed-rate notes due in 2032 under its £1bn Euro Medium Term Note programme. The bonds represent the sixth sterling bond issuance arranged for the group and form part of its broader strategy to widen access to property-backed investments beyond institutional investors.
The notes will pay a fixed coupon of 8 per cent annually, distributed semi-annually over their intended six-year term. Investors will receive repayment at par upon maturity in 2032, subject to the terms of the issue.
Secured against UK property loans
The bonds are secured against a portfolio of UK property loans originated and managed by LendInvest, including residential mortgages, buy-to-let lending, short-term finance and development loans. Bondholders will also benefit from a partial guarantee from LendInvest plc covering 20 per cent of the outstanding obligations.
The structure is designed to provide investors with exposure to the UK property finance market while maintaining defined credit protections. The underlying collateral pool must comply with a range of eligibility criteria, including a maximum weighted-average loan-to-value ratio of 77.5 per cent.
LendInvest said the loans backing the issue are supported by the same underwriting and credit-risk framework that the business has applied across more than £9bn of property lending since its launch in 2008.
The offer has been structured to attract both retail and wholesale investors, with a minimum subscription amount of £1,000 and additional investments permitted in increments of £100. The bonds are expected to be tradable on the secondary market through stockbrokers following admission to trading.
Lendinvest: “Strong investor appetite”
The launch comes as alternative lenders continue to play an increasingly significant role in UK property finance, filling gaps left by traditional banks in specialist mortgage and development lending. LendInvest has sought to position itself at the centre of that trend through a technology-enabled platform supporting loan origination, credit assessment and portfolio management.