LGB Capital Markets achieves first £100m MTN programme with Simply Asset Finance
It’s a moment for celebration both for LGB Capital Markets (“LGB”) and non-bank lender, Simply Asset Finance (“Simply”), as we announce an increase in their Medium-Term Note (MTN) programme from £65m to £100m. This is the first £100m programme arranged by LGB & Co., cementing both the success of the MTN model, as well as Simply’s own strong growth trajectory and ongoing investor confidence.
A proven strategy that’s paying off
Since it was founded in 2017, Simply has firmly established itself as a leading specialist business lending provider for UK SMEs, helping businesses access essential equipment and working capital to fuel their ambitions.
Illustrating the commercial success of its strategic outlook and understanding of the market, Simply experienced a record FY24, in which their loan book surpassed £500m and the company achieved a 55% year-over-year increase in profit before tax of £8.5m.
Against that backdrop, this new MTN programme expansion will help ensure the company has the flexibility to continue to expand, supporting its growing customer base while managing refinancing requirements.
Poised for ongoing success with the MTN programme
LGB originally established Simply’s £20m MTN programme in March 2020 to provide junior capital for loan book expansion. This latest increase to £100m marks the third expansion of the programme, reflecting strong investor demand and Simply’s consistent performance.
To date, around £60m of notes have been issued, with over £40m currently outstanding. The increased programme limit will allow Simply to refinance existing notes at maturity while maintaining funding capacity for future issuance, ensuring the business remains well-positioned for further growth.
It is a perfect example of LGB’s MTN programmes working to help businesses achieve their full potential by bringing private credit investors into secured SME and mid-market lending transactions.
Stefan Wolvaardt, chief financial officer of Simply Asset Finance, commented: “We have developed an excellent partnership with LGB, and we’re excited for that to continue. The SME sector remains central to the UK’s growth goals and making sure that they have ready access to flexible funding is critical to achieving those ambitions. With a strong pipeline and a growing team with specialist regional and sector expertise, Simply is on hand to make that happen.”
Fergus Rendall, director at LGB Capital Markets, added: “This record increase in the MTN limit reflects the confidence investors have in Simply’s management team, financial performance, and prudent credit approach. The programme has proven to be a highly effective funding tool, and we are pleased to continue providing Simply with a flexible and scalable structured finance solution to support its expansion in the UK SME market.”
With this latest programme expansion, LGB Capital Markets has now arranged over £490m in structured finance solutions, further reinforcing its expertise in supporting high-growth alternative lenders.