The process to raise the online property lending platform’s first retail bond was closed early and oversubscribed.

Around half of the proceeds raised came from major financial institutions, including several multi-billion-pound asset managers, two global insurance businesses and a major UK state pension fund.

The bond pays a fixed annual coupon of 5.25% for five years, and is secured against a portfolio of property loans and guaranteed by LendInvest. 

LendInvest claims that the retail bond is the first to be issued by a fintech business.

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“Listing our bond on the London Stock Exchange today marks a significant achievement for LendInvest, and adds considerable strength to our lending platform,” said Christian Faes, co-founder and CEO of LendInvest.

“At LendInvest, we aspire to be an alternative lender that continues to innovate, not just in terms of the technology we are building, but in all aspects of our business.

“We launched the bond programme to make our asset class available to retail investors through an LSE-listed offering because it is a well-established, robust structure that offers customers considerable protections.”

The retail bond is the first in a £500m bond programme that LendInvest plans 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 solely for the purpose of launching the bonds.