Funding Circle Holdings Sells £ 63m in SME Loans

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Matteo Castia

Funding Circle Holdings PLC said Thursday that it has sold loans to small and medium-sized enterprises in its two US warehouses to an asset manager for £ 63 million ($ 88.1 million).

The UK Small and Medium Enterprise Lending Platform said the award represented a £ 4 million increase in fair value.

“This profit will result in a further increase in adjusted earnings before interest, taxes, depreciation and amortization above the level indicated in our previous forecast and will be reflected in the results for the 6 months ended June 30,” the company said.

After paying off the bank debt associated with these loans, it will receive £ 38 million in net cash, according to Funding Circle.

“This sale is in line with our previously announced strategy of monetizing investments in the pre-pandemic period, which we put up for sale, if possible,” – said the company.

The stock was up 3.6p, or 2.3%, at 07:15 GMT to 161.6p.

Email Matteo Castia at matteo.castia@dowjones.com

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