The capacity of the facility will go up from £125m to £200m and the maturity of the facility has been extended so it will expire at least five years from the date of the agreed terms.
This would not be before 19 June 2030.
The facility will allow “significant additional funding capacity as the company seeks to grow its property-backed lending book across the United Kingdom, Ireland and the Channel Islands”.
To back this growth, Sancus Lending has issued £1.5m of preference shares in Sancus Loans to Somerston Fintech, a majority shareholder of the firm.
These preference shares have a non-cash, cumulative coupon of 15% and mature in November 2026.
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It has been made under the Somerston Junior Funding Commitment up to £10m.
Sancus Lending said the preference share issue will increase the capital deployed in Sancus Loans used for one of the group’s existing funding lines, enabling it to grow the loan book.
Earlier this year, Sancus Lending reported a return to profit over 2024.
