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Peer2Peer Finance News | December 13, 2017

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Oversubscribed, not stirred! LendInvest bond enters the stock market

Oversubscribed, not stirred! LendInvest bond enters the stock market
Marc Shoffman

PROPERTY investment platform LendInvest opened the markets at the London Stock Exchange (LSE) this morning after becoming the first fintech firm to list a retail bond.

The former Peer-to-Peer Finance Association member launched its retail bond offer last month and closed a day early after a surge of demand saw it raise £50m.

Issued by LendInvest Secured Income, a wholly-owned subsidiary of LendInvest, the five-year bond offers 5.25 per cent annual interest, payable twice a year.

It is secured against a portfolio of property loans and guaranteed by LendInvest and trades under the LSE ticker LIV1.

The listing is the first in a £500m LSE-listed note programme.

Read more: LendInvest to return to retail market with new bond issue

The specialist mortgage lender closed its online platform to retail investors in May, so the new notes will open up its property investment opportunities to individuals again.

“We launched the bond programme to make our asset class available to retail investors through an LSE listed offering because it is a well-established, robust structure that offers customers considerable protections,” Christian Faes, chief executive of LendInvest, said.

“However, while the bond was popular with retail investors, some of the City’s largest institutional investors also made significant investments.

“For four years now, we have been able to grow our business, make major investments in people and technology, and be a consistently profitable business.

“This track record was key to giving retail bond investors the comfort and confidence that LendInvest is a financially viable and sustainable business, and one that they could trust with their investment.”

Read more: LendInvest cancels application for P2P authorisation