The peer-to-peer lender is offering access to the P2P market via a stocks and shares ISA. The bond is structured as a traditional, asset-backed, listed bond and differs from any other retail bond, in that it provides unprecedented access to the fast-growing peer-to-peer market.
Investors in the ‘Wellesley P2P ISA Bond’ are able to invest up to £15,000 of their ISA allowance every year, with tax free returns of 4% per annum over three years or 5.25% per annum over five years. Funds invested in the Bond will be invested in asset-backed loans which are available on Wellesley’s Peer-to-Peer lending platform. Wellesley has funded over £165m of secured loans to date and is recognised as the fastest growing Peer-to-Peer lending platform in the United Kingdom.
The ‘Wellesley P2P ISA Bond’ is the only retail bond on the market to benefit from the firm’s Provision Fund; this discretionary fund can compensate investors in the event of any loan default and the sale of the loan security not recovering the loan amount. The balance of Wellesley’s Provision Fund and company reserves is in excess of £9.3m presently. The firm is also the only Peer-to-Peer lender to lend its own funds into every loan and will take the first loss if a borrower fails to meet loan repayments. Additionally, all lender funds are evenly distributed into every loan and therefore maximum diversification is guaranteed to all investors regardless of size.
Graham Wellesley, CEO & Chairman, Wellesley & Co. said:
“The Chancellor’s endorsement of Peer-to-Peer in 2014 has helped bring the sector into the mainstream and the demand for inclusion in the ISA framework has grown substantially. Whilst the consultation period continues, we have received enormous demand from investors for immediate tax-free returns and Wellesley is pleased to be the first to provide a practical solution to this ever growing consumer demand.
“Wellesley is not only the first platform to provide a P2P ISA solution, it is also the fastest growing P2P platform: it has funded the largest P2P loan in history, lent in excess of £160m and has a proven track record in delivering its investor promise of protecting investor capital via its prudent credit policy and use of its own funds as a safety buffer. We are continually striving to provide a pioneering solution for investors who continue to suffer in a low interest rate environment. We are delighted to offer Wellesley P2P ISA Bonds to Britain’s hard pressed investors – now as part of a tax free ISA, providing some of the safest and most secure returns on the retail bond market.”
Individuals willing to invest in the bonds can subscribe to the first issue from today until the closing date on Thursday 12th March. Subscription to the ‘Wellesley P2P ISA Bond’ will be available via existing SIPP Operator and ISA manager, European Pensions Management.
Wellesley has an approved programme of up to £500m with the first offering being up to £20m.
