Propifi has added a Euro series to its Dollar and Sterling bonds offer, opening up the market to European investors.
The bridging lender’s A-rated five-year bond is a high-yield debt instrument that offers investors a fixed return of 8.1 per cent per annum, which is paid quarterly. The bond is asset backed with investors having first legal charge over the assets, which are UK property or land and held in a secure trust structure.
The purpose of the bond is to raise funds through bond issuances to make first-charge secured bridging loans to UK commercial property developers, with a particular focus on UK housing associations.
The bond programme is approved by, and listed on, the Frankfurt Stock Exchange (Börse Frankfurt) for the issue of £5bn secured, electronically-traded corporate bonds with an investment-grade A-credit rating.
“The world is now restarting, and this is being led by the construction industry, especially in the realm of social housing where demand has really grown; this has resulted in a massive pipeline of interest from would-be borrowers,” said Euan McAlpine, chairman of Propifi.
“Our bonds help kickstart these vital projects, and the addition of a Euro series is a result of interest and enquiries from European investors wanting to get involved.”