Sancus Lending Group Limited shares jumped 53% to 1.38p after the AIM-listed specialist property lender agreed to increase and extend its credit facility with Pollen Street Capital.
Sancus said it had entered into definitive legal agreements to expand the size of the facility from £200 million to £300 million and extend its maturity so that it will fall due no earlier than 11 February 2031.
The revised terms provide at least five years of committed funding from the date of the agreement and are intended to support continued growth across the group’s UK and Ireland businesses.
The company said the enlarged facility would enhance funding capacity and flexibility for its property-backed lending platform in the UK, Ireland and the Channel Islands.
Announcement follows what Sancus described as a strong year of lending growth, including expansion of the loan book, improved profitability and balance sheet strengthening through a reduction in leverage and refinancing risk.
James Waghorn, chief investment officer, said: “The increased and extended facility is a strong endorsement of our platform, performance and leadership team and provides enhanced flexibility to support our continued growth across the UK and Irish markets.”