Project Finance Investments is investing in an asset backed deal secured against UK residential property. It has announced that it is committing to subscribe up to £12m for loan notes issued by Project Finance Investments (UK) Limited, a wholly owned subsidiary of the Company.
The proceeds of the Loan Note issue will be used to provide asset backed finance (the “Short Term Finance Loans”) to a specialist lender active in the UK short term finance market. The Short Term Finance Loans will be secured by way of a series of first ranking charges against UK residential property. The yield on the Loan Note is fixed at 7.8% per annum, payable quarterly in arrears.
All payments of both principal and interest in relation to the Loan Note are expected to be serviced from income arising from the Short Term Finance Loans.
The acquisition of the Loan Note has been financed fully from the proceeds of the Company’s recent IPO and this latest financing means c. 70% of the Company’s IPO proceeds have been committed within 3 months of the IPO.
PROJ : Project Finance Investments invests in residential property