Asset-backed bond offering 7% launches

Minerva Lending PLC has introduced an asset-backed, five-year listed bond which will offer fixed returns of 7% per annum.

Investments in the Minerva listed bond will fund asset-backed, short-term loans to companies in the UK, mainly for the purpose of property acquisition or development.

The loans will be made at a maximum 70% LTV, therefore providing a minimum 30% buffer before capital is put at risk.

The bond is targeted at investors who are seeking to keep their returns real at a time of sharply rising inflation.

“The Minerva listed bond has been launched to provide investors and savers with returns that are comfortably above inflation with the added benefit of asset-backed security,” said Ross Andrews, director at Minerva Lending.

“Crucially, all the loans securing the bond are underwritten by an independent credit committee and are made at a maximum 70% LTV, which offers a significant buffer in the event of default.”

Funds invested in the bond will be spread across a range of loans to provide diversification and protection for investors.

Minerva Lending Management Limited will be making the underlying loans and it has completed £300m of loans to date with no loss of capital.

An independent credit committee will carry out checks on all borrowers and securities and Minerva will only invest in British/EU-based companies.

“…You have an asset to fall back on and recoup some or all of your capital should the borrower not be able to repay,” added Ross.

“This is a world apart from unsecured bonds and gives investors not only the potential for strong real returns, but also all-important peace of mind.”

Minimum investment into the Minerva listed bond is £1,000.

There is no upper limit, but the bond is not covered by the Financial Services Compensation Scheme.

Sign up to our newsletter to receive more news like this story

I accept that by joining the DFT mailing list, I will receive relevant news and promotional material via DFT on behalf of its partners and advertisers. Your data will not be passed on to any third party.
No, thanks, just the news please.

Leave a comment