Investors offered yield of between 7 and 10% before tax and security via all assets debenture
UK Bond Network, the UK’s first peer to peer bond auction platform, has launched its latest bond issue to experienced investors in search of high yields. High net worth and sophisticated individuals, Family Offices and other Professional investors will compete to invest a total of £1.5million in the bond, which is being issued by a CIP Recruitment, a profitable UK company.
CIP delivered an EBITDA of £1.95m on turnover of £36 million in 2014, and has a client list including many blue-chip household names. The Company will use the capital provided by UK Bond Network to fund growth, including the opening of a three new offices and the expansion of services. As with all bonds issued via the platform, the borrowing company has undergone human credit assessment, professional due diligence, as well as legal verification. £1m of the bond has already been underwritten by institutional investors.
Investors in the bond can elect to invest for either a two or three year term, and will receive a coupon of between 7 and 10% before tax (as defined by participating investors in the bond). In addition to the headline interest, investors will receive 15% of the increase in EBITDA from the current financial year (2015) to the subsequent two or three financial years, in line with the investment term they opt for. UK Bond Network’s recent partnership with SIPPclub also enables individual investors to eliminate any tax burden by investing in the bond through their SIPP schemes.
New investors to the platform have 14 days from today to open an account and participate in the auction. As the company’s minimum funding requirement of £1m has been underwritten by institutional investors, the bond is guaranteed to be drawn down.
Chris Maule, CEO UK Bond Network comments on the issue:
“CIP Recruitment is a profitable business who, like so many businesses in the UK, deserves the funding they are accessing through UK Bond Network. Like all businesses seeking funds through our platform, Gary and his team have undergone an extensive due diligence process. What has come out of this is that they have a demonstrable track record in the temporary recruitment sector. We are proud to be supporting this British business by providing finance to them, but also our investors in offering them access to this opportunity.”
Gary Pinchen, CEO, CIP adds:
“CIP is a profitable recruitment agency, providing predominantly temporary staff to UK corporates through a number of long standing relationships. Having weathered two financial crises since its inception in 1993, the business has demonstrated both its resilience and longevity. We intend to use this capital injection to facilitate further investment in our people, branches and brands, and to allow us continue to grow our service proposition to our blue chip client base.
“I am confident that the group will continue to make significant progress and I look forward to taking those next steps with the investors in the bond. As a token of this I have personally made a commitment to invest a minimum of £100,000 alongside other investors in the bond.”