£1.3M Lombard Loan for UK Client

• Client: UK-based
• Loan amount: £1.3M
• Security value: £1.857M
• LTV: 70%
• Security: US-listed stock
• Interest rate: 2.20%

Enness was approached by a UK-based client who needed to raise liquidity to meet an upcoming tax bill. Rather than selling part of their investment portfolio to generate the required capital, the client wanted to use US-listed stock as security for a Lombard facility.

The timing was particularly important. The client wanted to secure the available pricing in January ahead of an anticipated interest rate increase in April, while retaining the flexibility to draw the funds only when they were needed.

Enness sourced a 70% loan-to-value non-recourse facility against securities valued at £1.857M, providing a £1.3M credit line. The structure included a lock-in option, allowing the client to secure the agreed terms in advance, alongside the flexibility to draw down the facility as required.

Using investments as security can provide an alternative way to access liquidity without necessarily selling the underlying assets. For clients with concentrated or substantial investment portfolios, this can be useful where capital is required for a specific liability or opportunity but retaining the investment position remains important.

However, securities-backed lending is highly dependent on the nature and value of the underlying investments, as well as lender criteria. Enness works with specialist providers to structure Lombard loans around the borrower’s requirements and the assets being offered as security.

In this case, the combination of a 70% LTV and flexible drawdown structure provided the client with access to the liquidity required while retaining the underlying US-listed stock.

 

ENNESS DOES NOT PROVIDE ADVICE ON SECURITIES-BACKED LENDING OR INVESTMENTS. LENDER INTRODUCTIONS ARE UNREGULATED. THE TERMS REFERENCED IN THIS CASE STUDY RELATE TO A HISTORICAL TRANSACTION AND ARE NOT INDICATIVE OF CURRENT OR FUTURE PRICING.