Allia C&C is delighted to have led a new series of 8 per cent Notes due 2032 issued for LendInvest Secured Income III plc under its £1 billion Euro Medium Term Note Programme. The offer closed several days early, last Friday.
The £75 million issue is LendInvest group’s sixth sterling small-denomination bond bringing its total issuance to £390m over 9 years and underlines the Group’s continued success in using the listed bond market to connect investor demand with its established UK property finance platform.
It is also the sixth small denomination bond to be led by Allia C&C in the last 12 months.
Bond Key Terms
The Bonds carry a fixed coupon of 8 per cent per annum and matures on 6 July 2032 at 100 per cent of their nominal value.
They are backed by a first floating charge over a pool of Eligible Loans, which primarily comprise UK residential, buy-to-let, bridging and development loans originated and managed by LendInvest. The Bonds also benefit from a partial 20 per cent guarantee from LendInvest plc.
The Bonds are expected to be admitted to the Official List of the FCA on 6th July and will be traded as Access Bonds on the London Stock Exchange’s OFIS market.
The collateral pool is subject to defined criteria, including a maximum weighted-average loan-to-value (WALTV) ratio of 77.5 per cent. The Eligible Loans are supported by LendInvest’s existing underwriting and credit-risk processes, which have been applied to almost £10 billion of property lending since 2008.
The offer that was opened on 10th June closed early, with an issue amount of £75m of which £25m nominal of bonds have been allocated and £50m retained for future sale.
The transaction builds on LendInvest’s established presence in the small-denomination bond market. As with earlier issues, the Bonds have been sold to both institutional and retail investors, demonstrating the value of regular issuance, clear communication and a familiar credit story.
At the same time, the issue illustrates the flexibility of the retail bond market for repeat issuers that wish to raise funding in measured amounts rather than rely solely on larger benchmark transactions. The wider revival of this market, supported by the UK’s updated prospectus and admissions regime and the London Stock Exchange’s Access Bond initiative on OFIS, provides a helpful backdrop to LendInvest’s continued use of this funding channel.
