Funding Circle SME Income attracts money from Citibank – Funding Circle SME Income Fund Limited says that the company has entered into a formal agreement with Citibank, N.A. London Branch to establish a funding transaction to make loans to UK small businesses through the Funding Circle platform . The transaction will serve to support the company’s target dividend yield of 6-7% per annum.
Under the terms of the agreement Citibank London will provide GBP50 million of funding into the transaction, by entering into a senior, floating rate loan. The company will contribute a portfolio of existing UK small business loans at par, and in return shall receive approximately GBP50 million of cash to be deployed in accordance with its investment policy, and junior notes.
Richard Boleat, the chairman of the company, commented “we are very pleased to be able to complete this transaction on attractive terms with Citibank London, having received financing proposals from a number of parties. The senior facility will be fully drawn on closing of the transaction, and the company’s leverage ratio, on a “look through” basis, will be approximately 49%, consistent with the board’s approved leverage limit of 50%.”
FCIF : Funding Circle SME Income attracts money from Citibank