LGB increase Simply’s MTN programme to £65m

LGB Capital Markets has arranged an increase to the Medium Term Note (MTN) programme of Simply Asset Finance from £39 million to £65 million.

Simply Asset Finance is a top 50 UK asset finance provider with a well distributed customer base across the UK and diversified asset classes. It offers finance products as a secured lender to SMEs to fund the purchase of business-critical equipment and to free up working capital.

Simply has been recognised as one of the fastest growing companies in Europe by the Financial Times, making the top 50 from a total of 1,000 companies.

LGB first established Simply’s £20 million MTN programme in March 2020. The programme allows Simply to access funding from a diversified network of private investors managed by LGB Investments. It is subordinated to senior funders and contributes towards book growth by partially funding new business while reducing the company’s blended cost of capital.

With £35 million of notes having been successfully issued under the programme – and Simply having delivered a record performance in FY22 – the company’s management was keen to ensure it had additional capacity under the programme to facilitate growth and utilise its flexibility. The programme increase was completed in May 2023 following strong support from existing noteholders.

Stefan Wolvaardt, Chief Financial Officer of Simply Asset Finance, commented: “The increase in the programme from LGB comes at a crucial moment of Simply’s growth. Over the past year we’ve celebrated some significant milestones, including £1bn lent since the business’ inception, and a successful FY22 which saw our loan book increase by 36% year on year. The funding increase will help us to continue growing and support even more UK businesses. The team at LGB are a pleasure to work with and we look forward to continuing our strong relationship.”

Fergus Rendall, Director, LGB Capital Markets, commented: “The continued success of the programme has highlighted the strength of the investment proposition, particularly the quality of Simply’s management team and shareholders, and the attractive terms available to institutional and sophisticated private investors. We look forward to working with Simply and providing an important source of capital as it continues to grow.”