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Challenger bank OakNorth makes first loan to a listed company in £10m deal

OakNorth is spreading its roots into the public markets, as it today completed its first deal with a..

By admin , in Money , at November 7, 2017

OakNorth is spreading its roots into the public markets, as it today completed its first deal with a listed company.

The challenger bank has loaned £10m to RM Secured Direct Lending (RMDL), an investment trust which itself lends to UK small and medium-sized enterprises (SMEs).

RMDL will use the £10m to leverage its own debt deals, aiming to increase the returns for its investors.

Read more: OakNorth spreads its roots: Challenger bank makes £15m loan to its first global company

“[OakNorth] have an excellent understanding of the complex SME lending market and the unique needs of mid-market companies that we invest in,” said James Robson, chief executive of RM Capital Markets which manages the RMDL fund.

RMDL aims to provide regular dividends through loans secured against assets such as real estate or plant and machinery, or income streams.

Read more: Challenger bank OakNorth hits unicorn status as it grabs £154m to take its fintech global

Since listing at the end of 2016, it has invested £68m in 21 loans to businesses such as restaurant groups, healthcare companies and renewable energy firms. Last year, it raised a further £30m from investors to continue its work.

RMDL has previously partnered with OakNorth on two joint loans, including one to finance the development of luxury hotel L'Oscar in central London and another to property company Strawberry Star to purchase and develop a mixed-use site in Wandsworth.

OakNorth launched in 2015 to finance fast-growing businesses, and has now grown its loan book to over £900m and became cash flow-positive last year.

Read more: Singapore state fund in talks to buy a stake in OakNorth

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