LGB Capital Markets expands Simply Asset Finance’s MTN programme to £100m

LGB Capital Markets (LGB) and Simply Asset Finance (Simply) have achieved a milestone by increasing the size of Simply’s medium-term note (MTN) programme from £65m ($84.27m) to £100m.

This represents the first £100m programme arranged by LGB.

Since its inception in 2017, Simply’s approach is said to have led to a record-breaking FY 2024, with its loan book surpassing £500m and a 55% year-over-year increase in profit before tax, reaching £8.5m.

LGB added that this performance sets the stage for further expansion, supported by the increased MTN programme. The company first introduced Simply’s £20m MTN programme in March 2020 to supply junior capital for loan book growth.

The latest expansion to £100m marks the programme’s third increase.

Approximately £60m of notes have been issued to date, with more than £40m currently outstanding.

The increased programme limit is expected to enable Simply to refinance existing notes at maturity while ensuring sufficient funding capacity for future issuance.

Simply Asset Finance CFO Stefan Wolvaardt said: “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.”

LGB director Fergus Rendall said: “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 expansion, LGB has now arranged more than £490m in structured finance solutions.

Earlier this year, Simply highlighted a divergence in UK businesses’ outlook and growth expectations as they adjust to tax reforms introduced in the October budget.

Despite challenges arising from changes to National Insurance and the minimum wage, a post-budget survey indicates that nearly 19% of businesses are now more inclined to invest, attributing this to greater clarity on the government’s economic strategy.