6th May

Lendinvest reveals fall in the value of loan portfolios

In July 2017 Retail Bond Expert reported on specialist mortgage lender LendInvest’s initial launch on the LSE  - Specialist lender LendInvest issues 5.25% retail bond due 2022 – and then its subsequent raise the following March - LendInvest returns to the market with 5.5 year secured retail bond offering 5.375%


LendInvest’s listing was the first in a £500m LSE-listed note programme, and the first retail bond to be listed by a fintech firm; demand for the bonds was high and they closed before the planned date as they were oversubscribed. Full details of the issues and their structure can be found by clicking the links above.

Now, as reported by P2P Finance News, the value of its first listed retail bond – LIV1 - has seen a £4m decline in the value of its loan assets in the last nine months.

Issuer of the bonds, LendInvest Secured Income, an LSE listed wholly-owned subsidiary of online mortgage lender LendInvest, recently published a breakdown of the two loan portfolios to 31st March.

LIV1 has a total of £49.3m in 66 loans within the portfolio, all of which are bridging loans, secured by first-ranking legal charge; this is a fall from the £49.7m reported in January, and a further decline from a July 2018 when the portfolio was valued at £53.3m.

The weighted average loan-to-value across the portfolio is 64%; all loans are against property in England, with 52% in Greater London, and none is in ‘material arrears’ - defined as three months past due.

LendInvest’s second bond – LIV2 – comprises 53 secured bridging loans worth £38.9m, an increase from January’s £35m, and that of £38m in July 2018; average loan-to-value on this portfolio is 66% with three loans worth £1.3m in material arrears, an increase to the £800,000 total across three loans in arrears in January.

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

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


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