The UK Bond Network, a peer-to-peer bond and loan platform, has launched its second offering following its first priced in December.
The new deal, a loan secured on an LSE-listed company with a market capitalisation of around £100 million (€122million; $167 million), reached its target five days after it was launched and well ahead of its 14 day deadline.
“We went live with our second auction last Wednesday and it has already reached £1 million in financing,” Chris Maule, chief executive of the UK Bond Network (UKBN) told Private Debt Investor. A second tranche of the offering, also targeting £1 million, is due to go live next Monday.
The platform, which launched with its first offering in December 2013, enables eligible companies to raise between £500,000 and £4 million.
It aims to bridge the gap between smaller alternative finance providers and the retail bond market, “[which is] generally not viable for companies seeking less than £20m,” according to the statement. “Investors can access secured investments, with security typically being valued at more than the debt itself, for terms of one to three years,” the group added.
26 investors participated in the second auction with commitments ranging from £5,000 to £100,000.