Blue Zest Secured Retail Bond Road Show – RNS – London Stock Exchange

Bluezest Mortgages and Loans Limited (“BlueZest”), the specialist mortgage lender, today announces that it has mandated Bedford Row Capital to arrange a series of meetings with fixed income investors in the UK and Channel Islands, to discuss a possible issue of sterling denominated bonds.Any resulting issue of Bonds will be made by another group company, BlueZest Secured Retail Bond PLC (the “Issuer”), as part of a bond programme that the Issuer intends to establish. An offer of Bonds may follow, subject to market conditions, and an announcement will be made in due course, if appropriate.

About the bond programme

The Issuer intends to establish a programme for the issue of secured bonds (the “Programme”).

It is expected that an application will be made for any bonds issues under the Programme to be listed on the Official List of the Financial Conduct Authority (“FCA”) and to trading on the regulated market of the London Stock Exchange (“LSE”) and through the Order Book for Fixed Income Securities (OFIS): one of the electronic trading services operated by the LSE for retail bonds.

Bonds issued under the Programme will benefit from a number of security interests to be granted by BlueZest and/or the Issuer (as the case may be). The benefit of such security is expected to be held on behalf of bondholders and other secured creditors by Capita Trust Company Limited as trustee.

The security package includes (without limitation) secruity granted over and in respect of:

  • each UK residential property-backed mortgage loan that BlueZest originates using the proceeds of Bonds;
  • a mortgage indemnity guarantee policy, arranged by BlueZest with AmTrust Europe Limited (a global insurer and part of the AmTrust Financial Group who are rated A (Excellent) by AM Best), which is intended to be taken out against each mortgage loan that BlueZest originates using the proceeds of Bonds and so provide insurance against borrower degault and subsequent losses suffered by BlueZest; and
  • certain bank accounts which are expected to be opened with a global financial institution into which the net proceeds of the issue of Bonds under the Programme will beheld (pending utilisation for mortgage loan completions) and collections will be received from customers and held until they are used to pay amounts due on the Bonds.

The Programme is intended to enable the Issuer to reguarly issue Bonds in denominations which make them accessible to retail investors. It is expected that the proceeds of each issue of Bonds will be on-lent to BlueZest and used to originate mortgage loans to customers secured against UK residential property and pay certain fees, costs, and expenses incurred by BlueZest and the Issuer in connection with each issue of Bonds.

About BlueZest

BlueZest is a technology-based specialised property investment funder offering a range of carefully tailored Buy to Let and development finance products. The company’s focus is on investing in and with landlords, developers and small business owners, offering a supportive business relationship as a preferred financing partner with open and honest fee structures, fast decisions, customer focussed operations, and a commitment to delivering what they call ‘The BlueZest Advantage’.

The Official Statement can be read here – Blue Zest Secured Retail Bond Road Show – RNS – London Stock Exchange

Posted on 01.11.2017 By
BlueZest

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