Sancus Lending Group Secures £1 Million in Junior Funding
Why we think this is good
The RNS announcement from Sancus Lending Group Limited (LEND) is positive overall, as it secures £1 million in additional funding through the issuance of preference shares to its majority shareholder, Somerston Fintech Limited. This funding will be used to grow the group's loan book, which should be earnings accretive. Furthermore, the RNS indicates that £7.1 million of the £10 million Somerston Junior Funding Commitment remains undrawn, providing the group with further funding availability. These developments are seen as positive for the company's growth prospects.
Key Points
- Sancus Lending Group issues £1 million in preference shares to majority shareholder
- Funding will be used to grow the group's loan book
- £7.1 million of £10 million Somerston Junior Funding Commitment remains undrawn
Summary
Sancus Lending Group Limited (LEND) has announced that it has issued £1.0 million of preference shares in a subsidiary to its majority shareholder, Somerston Fintech Limited. The preference shares have a non-cash, cumulative coupon of 15% and mature in November 2026. This funding will be used to grow the group's loan book. Additionally, the RNS states that £7.1 million of the £10 million Somerston Junior Funding Commitment remains undrawn, providing the group with further funding availability to support its growth plans.