Alpha Bridging has launched a retail bond to investors offering 10% gross per annum over three years.
The intermediary focussed bridging lender says it is offering investors the opportunity of strong returns in return for capital to take the business to the next level.
The bond will pay interest quarterly in arrears with the full return of capital at redemption with the option to request a one year extension at maturity if the investor wishes. The bond will have the benefit of the guarantee of Alpha Bridging Solutions Limited, whose assets will include over £7 million in cash and secured loans.
The minimum subscription per applicant is £10,000 and thereafter in multiples of £5,000. The bond is available to both personal and corporate investors and qualifies for holding in a SIPP.
Mercedez Binning, Alpha Bridging managing director, said: “As one of the fastest, most flexible bridging loan companies in the UK, we’ve been expanding rapidly and now seek further funds for growth. The company has always been profitable and the profits have been reinvested in the business, but we now intend to capitalise on our success and accelerate our growth by launching our first public bond.
“The bond is strictly limited to just £3 million and with a generous 10% annual coupon, we expect it to be fully subscribed quickly, so recommend those who are interested to act promptly.”
The closing date for applications is 5:00 pm on 31 December 2014, but as the offer is strictly limited to £3 million, applications for the bond will be dealt with on a ‘first come, first served’ basis and it is expected to close early.