iwoca came to UK Bond Network in August 2015 seeking £1,000,000 to expand their lending operations and to refinance short term bonds as they matured.
UK Bond Network investors helped the company to raise their full funding requirement, enabling them to extend new loans to borrowers and to refinance short-term bonds as they mature.
iwoca provides credit facilities of between £1k and £100k to small businesses across the UK, Germany, Spain and Poland. Founded in 2012, iwoca has issued over £150m in loans (as at 30/09/16) and shortly before the auction had completed a $20m Series B equity raise.
UK Bond Network provided us with a flexible finance solution during a period of rapid growth.MICHAEL ELALOUF, CFO, IWOCA
Their distribution platform and professional approach was a great solution for us.
Key auction statistics & Headline terms
Average bid size
Interest rate (gross per annum)
|Coupon||9% gross per annum|
|Repayment||360 days, repaid quarterly in arrears|
|Security||A collateralised pool of loans, with covenants requiring a minimum level of cash and performing loan coverage at any one time|
The largest bid made was for £107,000, with two £100,000 bids and four £50,000 bids also forming part of the bond.
The most active day of the 2-week auction was 19th August, where 7 bids totalling £227,000 were made.
Here's what some of the iwoca Bondholders had to say after the successful redemption:
"I'm a fairly experienced Alt-Fi platform user. This was my first experience of using the UK Bond Network platform. The whole process was very simple and worked seamlessly. The information available about the Bond offer was clear and allowed an informed decision. The combination of interest rate and bond duration was a key attraction. Repayments were made on time and I felt well informed throughout the process. Now that my capital has been returned I am looking forward to re-investing it in similar high quality opportunities through UK Bond Network."
LEE B., UKBN INVESTOR
"The iwoca bond has now matured successfully, so as an investor I'm very pleased to have return of capital, as well as the 9% coupon. As ever, UKBN appear to have been scrupulous in their due diligence. This certainly has made my life easier as an investor. When the iwoca bond was first publicised, I sent some queries to Chris about the finer points of the issue. He was able to reassure me about some of the iwoca background. I think a lot comes down to trust – and I have a considerable amount of trust in the work UKBN perform before a bond is ever brought to market."
DAVID P., UKBN INVESTOR
"The bond performed exactly as described on the tin – which is all that can be expected of it. The bidding process and subsequent accounting platform have been transparent and easy to use."
JULIAN V., UKBN INVESTOR
"I like the platform website - easy to navigate, all the necessary information present. Investing is straightforward as is funding my account. The iwoca bond was attractive as the company looked stable and the rate was good. It was relatively short-term but I am happy to have a mix of durations."
NEIL A., UKBN INVESTOR
Chris Maule, CEO of UK Bond Network, discusses the platform's decision to support iwoca:
“As an alternative funder ourselves, we're well aware of the potential offered by the wider alternative finance market; iwoca's approach brings an incredibly exciting proposition to this, and one that we were happy to offer our investors."
"Our due diligence process means that we examine the senior management team of any business we support, and the financial experience visible at iwoca [was] a significant source of confidence for us. Many leading investors have already backed iwoca, both by directly investing in the equity of the company as well as funding the growth of their loan book via previous debt issues - we're very happy to be adding our and our investors' names to this list."