The funding provides the lender with access to institutional capital and alternative source of debt finance
Non-bank lender Kuflink Group has entered into a £35 million institutional debt facility placed by investment finance group European Risk Capital with Paragon Bank.
The revolving credit facility, secured on a diverse portfolio of bridging and development loans, provides Kuflink with strategic access to institutional capital, scalable growth, funding optionality, and a significant alternative source of debt finance.
With an initial £35 million aggregate size subject to increase, and a flexible three-year commitment renewable annually, the facility complements Kuflink’s Market Place lending platform, having originated in excess of £300 million gross loans since its inception with zero investor losses to date.
Kuflink, which attained B Corp certification in May, has announced plans to grow its loan book to up to £500 million within the next two years.
“The new facility will take Kuflink to the next stage in the development of our growth plans and is particularly welcome as it ensures certainty of funding for our introducers and complements our existing, successful Market Place lending platform,” commented Narinder Khattoare (pictured), chief executive at Kuflink.
“This agreement is the culmination of a lot of hard work, not only from our team at Kuflink, but especially at European Risk Capital and Paragon Bank, and I would like to thank everyone involved for making it happen.”
Tony Gioulis, managing partner at European Risk Capital, said the facility was a testament to Kuflink’s loan portfolio credit quality, robust underwriting criteria and, its team’s resilience and track record.
“The transaction is consistent with European Risk Capital’s strategy of delivering transformative value to UK non-bank originator lenders in terms of committed growth capital and enabling them to access enhanced leverage at a competitive cost of funds, underpinned by our institutional investor base and its broad risk/return credit profile,” Gioulis added.
Jamie Pickering, director of structured lending at Paragon Bank, said it was delighted to further its support for innovative specialist lenders.
“With a strong management team and a positive focus on the UK housing market, Kuflink is ideally placed to achieve their growth plans,” he remarked. “I look forward to following Kuflink’s successful progress, and supporting the growth of other specialist lenders, in the years ahead.”
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