Kuflink secures £35m from Solihull’s Paragon
Kuflink has secured a £35m revolving credit facility placed by European Risk Capital with Solihull-based Paragon Bank.
The peer-to-peer property lender said that the new funding line will give it strategic access to institutional capital, scalable growth, new funding options, and a significant alternative source of debt finance.
Narinder Khattoare, CEO, Kuflink, commented: “The new facility will take Kuflink to the next stage in the development of our growth plans and is particularly welcome as it ensures certainty of funding for our introducers and complements our existing, successful Market Place lending platform. This agreement is the culmination of a lot of hard work, not only from our team at Kuflink but especially at European Risk Capital and Paragon Bank and I would like to thank everyone involved for making it happen.”
Tony Gioulis, managing partner, European Risk Capital commented: “Against the current macroeconomic backdrop and challenging market conditions, the Facility is a testament to Kuflink’s loan portfolio credit quality, robust underwriting criteria and, in particular, Team Kuflink’s resilience and track record, in conjunction with Team Paragon’s product skill and asset class expertise. The transaction is consistent with European Risk Capital’s strategy of delivering transformative value to UK non-bank originator lenders in terms of committed growth capital and enabling them to access enhanced leverage at a competitive cost of funds, underpinned by our institutional investor base and its broad risk/return credit profile.”
Jamie Pickering, director, structured lending, Paragon Bank, added: “Paragon is delighted to further our support for innovative specialist lenders by providing Kuflink with a bespoke, structured solution. With a strong management team and a positive focus on the UK housing market, Kuflink is ideally placed to achieve their growth plans. I look forward to following Kuflink’s successful progress, and supporting the growth of other specialist lenders, in the years ahead.”
