LGB Capital Markets (LGB) and Simply Asset Finance (Simply) have reached a significant milestone, with the expansion of Simply’s Medium-Term Note (MTN) programme from £65m to £100m. This marks the first £100m programme arranged by LGB & Co., underscoring both the effectiveness of the MTN model as well as Simply’s strong growth trajectory and ongoing investor confidence.
Since its inception in 2017, Simply’s strategic approach has yielded remarkable results, culminating in a record-breaking FY24. Simply’s loan book surpassed £500m, and it reported a 55% year-over-year increase in profit before tax, reaching £8.5m. This strong performance sets the stage for further expansion, with the latest MTN programme increase providing the flexibility needed to sustain its growing customer base and manage refinancing obligations effectively.
LGB originally launched Simply’s £20m MTN programme in March 2020 to provide junior capital for loan book expansion. The latest increase to £100m represents the third expansion of the programme, reinforcing strong investor demand and Simply’s consistent financial performance.
To date, approximately £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 ensuring sufficient funding capacity for future issuance, positioning the company for continued success.
This achievement highlights LGB’s expertise in structured finance, demonstrating how its MTN programmes effectively connect private credit investors with secured SME and mid-market lending opportunities.
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 expansion, LGB Capital Markets has now arranged over £490m in structured finance solutions. And this milestone highlights the increasing role of MTN programmes in supporting the UK’s SME lending sector.
