£50m raised by innovative bond from property investment platform

Property investment platform LendInvest has raised £50m thanks to the over-subscription of its first retail bond, launched on the London Stock Exchange.

The bond is the first in a programme of issues planned by LendInvest and will be used to fund property loans to professional borrowers around the UK.

The process to raise the bond was closed early and oversubscribed, thanks to what LendInvest describes as “strong demand from retail and institutional investors” including asset managers, two global insurance businesses and a major UK state pension fund.

LendInvest provides finance to property entrepreneurs and small and medium sized enterprises and provides a platform for investors - from individuals through to large institutions - to invest in the mortgages it originates.

It constitutes a fourth funding channel for LendInvest, alongside the company’s online investment platform, its funds management group, and a number of dedicated institutional funding lines; the issue is also the first of its kind by a so-called FinTech enterprise.

The retail bond is the first in a £500 million bond programme that LendInvest intends to offer to its investment customers over the coming years. 

The bond was issued by LendInvest Secured Income Plc, a wholly-owned subsidiary of LendInvest created for the purpose of launching the bonds.