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Peer2Peer Finance News | August 18, 2019

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LendInvest’s first retail bond sees loan assets decline in value

LendInvest’s first retail bond sees loan assets decline in value
Hannah Smith

LENDINVEST’S first listed retail bond has seen a £4m decline in the value of its loan assets compared to nine months ago.

LendInvest Secured Income, which is a listed wholly-owned subsidiary of online mortgage lender LendInvest, revealed a breakdown of its two loan portfolios for its retail bonds for the three months to 31 March.

Its first retail bond – LIV1 – has a total of £49.3m in secured loans within the portfolio, all of which are bridging loans.

This represents a fall in value from the £49.7m reported in a January update covering the three months to 31 December 2018, and a further decline from a July 2018 update that valued the portfolio at £53.3m.

There are 66 loans in total, all of which are secured by first-ranking legal charge. The weighted average loan-to-value across the portfolio is 64 per cent.

All the loans are against property in England, with 52 per cent in Greater London. No loans are in material arrears, which is defined as three months past due.

An update for its second listed bond, LIV2, comprises 53 secured bridging loans worth £38.9m. This is an increase from January’s figure of £35m. In a July 2018 update, the loan portfolio was worth £38m.

The average loan-to-value across the portfolio is 66 per cent. There are three loans worth £1.3m which are in material arrears, up from a value of £800,000 across three loans in arrears in January.

In terms of the location of the properties, 96 per cent are in England, of which 45 per cent are located in Greater London, and 4 per cent in Wales.

LendInvest Secured Income came to market with a five-year retail bond issue in summer 2017. It closed early after a surge in investor demand.

Read more: Oversubscribed, not stirred! LendInvest bond enters the stock market

The listing was the first in a £500m LSE-listed note programme, and the first retail bond to be listed by a fintech firm.

LendInvest is currently a private company but is considering a £500m IPO as one of a number of strategic options for growth.

Read more: LendInvest bond backs £50m of property loans