London Stock Exchange has included LendInvest, the alternative property lender and investment platform, to trading on its Order Book for Retail Bonds (ORB), with the launch of a five-year dated bond paying an annual coupon of 5.25 per cent. Due to strong investor demand, the offer period closed early, on Thursday 3 August 2017, with the bond raising £50 million. The issuance comes under LendInvest’s new £500,000,000 Euro Medium Term Note Programme established on London Stock Exchange’s Main Market.
LendInvest is also the first UK company on ELITE, LSEG’s business support and capital raising programme, to access the debt capital markets to support its growth. ELITE offers the UK’s most exciting and ambitious private companies a full programme to help them grow, including education, business support and access to Europe’s financial and advisory community. LendInvest was admitted to ELITE in April 2016 and has since grown rapidly.
London Stock Exchange Group is committed to supporting increased private investor participation in the financial markets. The demand for LendInvest’s retail bond highlights private investor appetite for retail-sized bonds in the UK. London Stock Exchange launched ORB in 2010 to open up the corporate debt market to private investors and provide companies with an alternative source of funding and today counts 60 retail bonds from 37 different issuers.
Pietro Poletto, LSEG’s Head of Fixed Income Markets said:
“Welcoming the UK’s first and largest online market place platform for property lending and investing, LendInvest, to trading on our Order Book for Retail Bonds is a significant milestone for the company and London Stock Exchange Group. The successful listing reinforces LSEG’s position as a leading retail bond trading venue in Europe and the success of our ELITE programme in supporting companies to access a range of funding options. ORB and ELITE are just two of our innovations that help support fast-growing companies tap into retail liquidity pools and access long-term patient capital.”
Christian Faes, LendInvest CEO and Co-Founder said:
“The retail bond offers compelling returns and access to a much sought after asset class in a world of low interest rates.
“As we continue to scale the business, we’re increasingly looking to diversify our funding model and expand our capacity to lend to under served 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”.