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Peer2Peer Finance News | October 17, 2018

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SyndicateRoom to offer LendInvest’s retail bond to its members

SyndicateRoom to offer LendInvest’s retail bond to its members
Kathryn Gaw

ONLINE investment platform SyndicateRoom its giving its customers the opportunity to invest in specialist mortgage lender LendInvest’s newly-launched retail bond.

This is the first time that SyndicateRoom has offered a retail bond to its members and it is believed to be the first tie-up of its kind between two fintech businesses, according to LendInvest chief executive Christian Raes (pictured).

The bond pays interest of 5.25 per cent, due in 2022.

Peer-to-Peer Finance Association member LendInvest closed its online platform to retail investors in May, so the new notes, launched earlier this month, have opened up its property investment opportunities to individuals again.

Read more: MarketInvoice, Funding Circle, Zopa, LendInvest make Fintech 250

“This is the first time we have seen newer fintech platforms working closely alongside the old guard of the investment management world to provide access to investment opportunities in this way, and it’s working well,” said Raes. “In an era of record low interest rates coupled with constrained bank lending, we’ve developed a unique and compelling proposition for investors by offering access to a sought after asset class delivering compelling returns.

“As we continue to scale the business, we’re increasingly looking to create new entry points to an attractive asset class that suits a broader range of investors seeking competitive risk-adjusted returns. The launch of this bond allows us to achieve both of these ambitions, supporting future growth goals.”

Read more: LendInvest Capital’s fund hits £100m 

Tom Britton, co-founder of SyndicateRoom, said that it was the first time that the firm had offered its members access to a retail bond, but hinted that similar deals may be announced in the future.

“By giving our members access to yet another type of offering we’re allowing our investors further opportunity to diversify their portfolios,” he said. “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.”

Read more: LendInvest cancels application for P2P authorisation

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

The issuance was proposed by LendInvest’s wholly-owned subsidiary, LendInvest Secured Income, and LendInvest will act as the guarantor of the retail bonds. The bonds will be secured by way of a floating charge over the whole of the undertaking and all property, assets and rights, both present and future, of LendInvest Secured Income.