WELLESLEY has unveiled details of its new, listed bond.
The alternative property development lender announced earlier this year that it was winding down its peer-to-peer lending and mini-bond products as it shifts towards listed bonds and is now open for registrations on its first product.
It is offering the Wellesley Property Bond, which will be open for investment on 4 July.
The ISA-eligible bond has a minimum of £1,000 and offers a one-year fixed rate at three per cent or three-year term paying annual interest of four per cent.
The alternative property development lender, which received Financial Conduct Authority (FCA) authorisation in February, stopped accepting new money into its P2P product in May 2017 and had previously indicated that it was planning to re-launch the offering.
However, it instead decided that the listed bond model was more appropriate for the business and its investors.
“We feel that listed bonds are the future for Wellesley, given the very niche type of lending we do,” Andrew Turnbull, managing director of Wellesley, told Peer2Peer Finance News in February.
“There are plenty of great P2P lenders out there and we think the industry is going to do very well, but bonds work better for large property development loans.”
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