The Barbican ISA is run by Northern Provident Investments, an ISA manager, and enables you to invest in the bond issued by Barbican Bond Co 1 Limited (part of The Barbican Group).
Asset-backed lending refers to a form of lending that involves assets being used to provide security over an investment. This can be in the form of land, properties or inventory. The added security with asset-backed lending involves the potential for an asset to be taken by the borrower, with the help of a security trustee, as a form of repayment. With assets used as collateral, this is a major reason as to why firms may decide to invest through asset-backed lending. The potential terms of asset-based lending depend on the type and value of assets offered as security.
*The fact that the bond is asset-backed would not guarantee that all capital would be repaid. This also means that there is a liquidity risk and there is likely to be a delay in repaying your capital should you request it.
**Investment in bonds through an ISA is likely to be hard to transfer/sell and you should expect to hold the investment for the duration. You should review this before making any decision and read the risk section fully before proceeding any further.
In relation to bond investment with The Barbican Group, asset-backed means the bond which is invested in through your ISA is ultimately secured against what we believe will be steady revenue streams and properties. This will include the security it takes on from the sector of investments it is financing. Funds will be asset backed from day one, with the asset value increasing throughout investment. However, there is no guarantee that the security will be sufficient to repay bondholder capital and interest, it does not guarantee a return and Your Capital is at Risk.
Asset-backed lending, as aforementioned works with the help of a security trustee. This can be any
entity whose job it is to ensure that all security interests are held for both parties. The security trustee guides the whole process, ensuring that all
interests are held. This does not mean a return for bond holders is guaranteed and security may be insufficient to repay the capital and interest
due from the bond.
With reference to Barbican the process starts with a customer being given a dedicated account manager, who guides the customer through the application phase and beyond. An investment is delivered through an ISA manager into Barbican Bond Co 1 Limited, which is the first series of mini-bond issued by a subsidiary of The Barbican Group. Upon three years the bond is due to mature and the initial investment, as well as a up to 21% return, is due to be delivered back to the customer’s account.
*A legal charge is what mortgage lenders use to give themselves security over a property when they issue a mortgage.
Barbican have a careful project selection and only look to invest in industries and businesses that are sustainable and economical. As a result the majority of our investment focuses on healthcare, waste disposal and logistics.
Barbican have a highly experienced team with 128 years of combined success which gives us a unique ability to evaluate projects efficiently and minimise risk. However, please note that despite any previous experience past performance is not a reliable indicator of future results and it does not guarantee a return.
Please note that despite any previous experience past performance is not a reliable indicator of future results” to the ‘Experience’ section.
Just ultimately make asset backed loans in diversified project portfolios to help to minimise associated investment risk. The fact that the bond is asset backed would not guarantee that all capital would be repaid. This also means that there is a liquidity risk and there is likely to be a delay in repaying your capital should you request it. Additionally there is no FSCS cover for bonds.
The team behind the Project Company is a highly experienced management team with a combined 128 years of success. *Despite any previous experience past performance is not a reliable indicator of future results.
You could receive up to 7% tax-free returns through the Innovative Finance ISA. Tax treatment depends on the individual circumstances of each investor and may be subject to change in future. However Your Capital is at Risk.
The potential to create an additional tax free monthly income through your Barbican ISA, by purchasing additional bonds at a minimum of £100 per month. There are no fees or additional charges and you can choose to increase or decrease the amount you invest per month. Tax treatment depends on the individual circumstances of each investor and may be subject to change in future.