Bridging finance lender Propifi, which is headed by property veterans Euan McAlpine and Rod Black, has added a Euro series to its Dollar and Sterling bonds offer, opening up the market to European investors.
Propifi’s A-rated 5 year bond is a high-yield debt instrument that offers investors a fixed return of 8.1% pa which is paid quarterly. The bond is asset backed with investors having first legal charge over the assets, which are UK property or land and held in a secure trust structure.
The purpose of the bond is to raise funds through bond issuances to make first-charge secured bridging loans to UK commercial property developers, with a particular focus on UK housing associations. The bond programme is approved by, and listed on, the Frankfurt Stock Exchange (Börse Frankfurt) for the issue of £5 billion secured, electronically-traded corporate bonds with an investment-grade A-credit rating.
Chairman Euan McAlpine commented: “The world is now restarting, and this is being led by the construction industry, especially in the realm of social housing where demand has really grown; this has resulted in a massive pipeline of interest from would-be borrowers.
“Our bonds help kickstart these vital projects, and the addition of a Euro series is a result of interest and enquiries from European investors wanting to get involved.”
Propifi uses bonds as one of its funding streams to fill its growing lending pipeline of over £100m.
