JLG Group completes new funding via £85M Bond sale
Group say a further doubling of lending book realistic after strong 2019
Further £100m funding ‘in the offing’ from a range of other institutions.
Alternative finance provider JLG Group PLC has successfully raised £85m worth of investment grade corporate bonds to help support its 2020 growth ambitions.
In 2016 the Group was the first alternative lender to raise funding in this innovative way with the bonds being backed by its portfolio of business loans, enabling investors to receive a fixed income as a result of its profitable SME funding model.
The bonds are fully tradable and boasting a long-term stable outlook.
John Davies, Executive Chairman at the JLG Group: “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.
Mr Davies continued: “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.”
The Group entered the UK alternative finance sector in 2012 with the aim of providing a real alternative to Business Banking and has built a robust, scalable, Anti Money Laundering (AML) compliant process for on boarding Corporate SME Borrowers in the UK and eventually Europe. This has been achieved through increasingly using FinTech to streamline the application process and deliver exceptional customer experience. The Company’s current loan book is over £100m and the next stage of the Company’s development will be to leverage its considerable experience and knowledge of the support SMEs need by introducing a wider range of banking services.
JLG Group PLC is the parent company of the award winning Just Cash Flow PLC which specialises in providing revolving cash facilities to SMEs to assist with smoothing the peaks and troughs of working capital.
The Group was the first alternative commercial lender to be a Professional Associate Member of the British Banking Association.
Bond issuer Global Exchange Market of Euronext Dublin. Returns between 3-8% depending on term.