Sancus Lending commits £1.4m to subsidiary Somerston Fintech

(Sharecast News) - Sancus Lending Group said on Tuesday that it has issued £1.4m of preference shares in its lending subsidiary to Somerston Fintech, increasing capital available to support growth in the group's loan book. The AIM-traded alternative lender said the preference shares were issued in Sancus Loans to Somerston Fintech, a subsidiary of Somerston Group, which is the majority shareholder of the company.

It said the shares carried a non-cash, cumulative coupon of 15% and would mature in November.

The issue was made under the Somerston junior funding commitment of up to £10m announced in January last year.

Following the latest drawdown, £1.55m of the facility remained undrawn, taking account of amounts already used.

Sancus said the additional capital would be deployed within Sancus Loans under one of the group's existing funding lines, enabling further expansion of its loan book.

Reporting by Josh White for Sharecast.com.