Commercial News

SME lender raises £85m through bond sale

Rozi Jones -
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22nd November 2019
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"Our bond programme is a stable and controllable funding vehicle that is far less likely to be impacted by external headwinds. "

Alternative finance provider, JLG Group, has raised £85m through a bond sale as the company prepares for a major push into the SME finance sector in 2020.

The Group says a further £100m in funding is 'in the offering' from a range of institutions and expects to double its loan book in 2020.

In 2016 the Group was the first alternative lender to raise funding in this way with the bonds being backed by its portfolio of business loans, enabling investors to receive a fixed income as a result of its SME funding model.

John Davies, executive chairman at JLG Group, commented: “Our bond programme is a stable and controllable funding vehicle that is far less likely to be impacted by external headwinds.

“The success of our bond programme can also be measured by the fact we have now redeemed the initial £23m three year bonds issued in 2016.

"In addition to the bond programme a number of institutions have expressed serious interest in providing further funding lines for in excess of £100m.

“We have enjoyed a successful year with growth in our loan book of just over 100% while keeping capital losses at industry leading low rates. Importantly for investors we continue to prove that our business approach works and we are confident of a further 100% growth of our loan book over the next 12 months.

“We combine proprietary technology and highly experienced underwriters to make well informed lending decisions that support well-run businesses that want to invest and grow. One of the key drivers behind our approach and success is an absolute focus on ‘affordability’ so we can be confident that the SMEs we lend to can afford the repayments on the finance facilities we provide.”

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