Just Loans Group seeks to raise £50m through A-rated tradable bond

Alternative lender Just Loans Group is looking to raise £50m of new funding through an A-rated tradable bond structure backed by a portfolio of small business loans.

The new bond will be fully tradable on a daily basis and has been issued through Escher-Marwick PLC on behalf of Just Cash Flow PLC, which is part of the Just Loans Group.

John Davies, director of Just Cashflow, claimed that the investment grade rating means the bond is the first structure of its kind to fund SME cash flow loans.

“We are delighted with this credit rating as it recognises both the strict underwriting criteria we apply, coupled with the very high level of security we take on each loan,” John explained.

The new funding will help Just Loans to increase the number of companies it supports and provide longer-term funding requirements for customers seeking three- to five-year facilities.

John suggested that the new investment rating will also help the firm to secure more competitive funding in future. 

A spokesperson for Bedford Row Capital Partners, which acted as arranger and lead manager for the transaction, added: “Bedford Row Capital Advisers is delighted to be working with Just Cash Flow PLC to help them increase the size of their existing loan book.

“The SME sector has many excellent companies with good quality assets and solid cash flows that have largely been neglected by the banks when it comes to suitable long-term financing options.”

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