UK-based fintech LendInvest LON:LINV is refinancing part of its outstanding debt through the issue of new bonds maturing in November 2030, offering a coupon of 8.25%.
The company, which specialises in property-backed lending, has launched an exchange offer for its 2025 and March 2026 notes, allowing holders to swap them for the new 2030 paper. The move comes as LendInvest looks to lock in cheaper funding following a sharp rebound in profitability and funds under management.
Net income for the year to March 2025 rose over 90%, while funds under management climbed above £5 billion, underscoring a turnaround after two challenging years marked by slower growth and asset disposals.
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Under the exchange terms, LendInvest will exchange up to £20 million of its existing £60m 11.5% March 2026 notes, and an uncapped amount of its existing £60m 6.5% 2025 notes. Investors will receive £104.5 worth of the 8.25% notes for every £100 of the 11.5% bonds. At the time of writing, the 11.5% bonds traded around £105.
The 8.25% coupon will be paid semi-annually. The issue, capped at £75 million, forms part of a wider £1 billion debt issuance programme launched in October, which will also allow LendInvest to issue notes in sterling, euros and dollars. The exchange offer runs until 11 November.
The LendInvest revenue model
The new notes are backed by a portfolio of UK property loans – including residential, buy-to-let, bridging and development loans – with a maximum weighted-average loan-to-value ratio of 77.5%. The relatively conservative structure is designed to limit default risk. The bonds are eligible for inclusion in Stocks & Shares ISAs and SIPPs.
Unlike traditional banks, LendInvest primarily operates as a digital intermediary, connecting investors with borrowers through its online property finance platform. Its forte is lending to borrowers with complex income streams or self-employed profiles, often overlooked by high-street banks. Consequently, LendInvest’s loans tend to carry slightly higher interest rates – around 5.75% compared to roughly 4.75% for a typical high street mortgage.
The fintech’s main source of income is platform fees, supplemented by income from a portfolio of mortgages and loans for property professionals and developers, and property-backed loans for investors.
Return to strong growth
LendInvest grew rapidly during Covid, recording phenomenal growth in net income – up 270% in fiscal 2021, and 187% in 2022. The following two years were marked by a slowdown and a sharp decline in 2024, prompting a strategic reset and disposal of some non-performing assets.
By the end of fiscal 2025 in March this year, LendInvest had regained momentum, reporting a 90% increase in net profit and £93m in revenue. It also boosted funds under management to £5.14 billion, supported by major financial injections including a £300 million renewal of its funding syndicate with BNP Paribas, Barclays and HSBC, and a £1.5 billion funding agreement with JP Morgan.
LendInvest’s mortgages division achieved record lending volumes of £385m in the third quarter of fiscal 2025 (ending 31st December 2024), including £123m in December alone. Its total lending for calendar year 2024 reached a record high of £1.168bn, surpassing the previous high of £1.125bn in 2022.
Over the past year, the company strengthened its balance sheet, de-risked the business, and reduced its debt by 56% to £645m. Bonds remain one of LendInvest’s four funding channels alongside its platform, funds and institutional lines.
The new 2030 notes are being issued by LendInvest Secured Income III plc, a special-purpose subsidiary of the fintech parent company LendInvest plc.
