LendInvest unveils second retail bond

LENDINVEST has launched a second retail bond to help fund loans on its property investment platform.

The former peer-to-peer lender is offering investors a return of 5.37 per cent a year until 2023.

Interest is paid twice a year and the bonds have a minimum initial investment of £2,000 and are available in multiples of £100 thereafter.

The offer period is now open and is expected to close at or before 12pm on 29 March.

The bonds are expected to be trade on the London Stock Exchange’s regulated market through the electronic Order Book for Retail Bonds.

Read more: LendInvest cancels application for P2P authorisation

“We are delighted to be coming back to the market so soon after the successful issue of our first oversubscribed bond in August 2017,” Christian Faes, co-founder of LendInvest, said.

“Our marketplace platform provides access to our loans to an extremely wide universe of investors, and our retail bonds make up an important channel for both retail and institutional investors alike.

“Banks and other traditional lenders continue to retrench from property lending, constrained by increasing capital adequacy requirements and other limiting factors.

“This scenario shows no sign of changing and exacerbates the lack of capital available to professional property investors and developers trying to run their businesses around the country. The door is open for alternative lenders, like LendInvest, to be highly competitive in this space.”

The former Peer-to-Peer Finance Association member became the first fintech firm to launch a retail bond last August, which 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, guaranteed by LendInvest and trades under the LSE ticker LIV1.