London Stock Exchange welcomes PRS Finance

London Stock Exchange today welcomes PRS Finance Plc, a subsidiary of investment manager Venn Partners (“Venn”), following the recent listing of its inaugural £265 million bond from its £3.5 billion Guaranteed Secured Bond Programme.

The bonds issued by PRS Finance Plc are a part of the Private Rented Sector Housing Guarantee Scheme (“Scheme”) that Venn was chosen to manage on behalf of UK Government. Its role is to originate, underwrite and manage a portfolio of loans to borrowers secured against their new institutional private rented sector (“PRS”) housing in the UK. These loans are match funded by the Government guaranteed bonds that PRS Finance plc issues.

The purpose of the Scheme is to support the development of the emerging institutional PRS housing market in the UK by providing a stable source of long term debt to the sector; loans of up to 30 years can be offered to borrowers on competitive terms, and we encourage potential borrowers to get in touch.

This innovative Scheme is one of a number of new lending platforms that Venn has built and manages, as it seeks to take advantage of the big changes happening in the way that credit is supplied to people and businesses.

Richard Green, Partner at Venn Partners said:

“We are delighted to see that the PRS Housing Guarantee Scheme that we manage for UK Government is playing its part in supporting the development of the UK institutional private rented sector (PRS) housing market. We are encouraged by both the strong demand for loans we have seen from borrowers, and from institutional investors for the bonds that fund them. Through PRS Finance Plc, we hope to be a regular issuer of bonds over the next few years as we continue to fund a wide range of PRS projects across the UK.”

Housing and Planning Minister Gavin Barwell said:

“This Government is committed to creating a bigger, better private rental market so there is greater choice for tenants as we make this a country that works for everyone.
 
“So I’m delighted to be at the London Stock Exchange to celebrate the successful launch of this inaugural bond. Backed by £10bn government guarantees, it has already helped develop new homes that will increase supply and strengthen the sector to meet the needs of tenants well into the future.”