Lombard loans in United Kingdom.
Private credit against United Kingdom-listed shares — pledged, not sold, with ownership retained.
A Lombard loan against United Kingdom-listed shares is credit secured by a pledge of equity listed on the LSE. The holder pledges the shares as collateral, draws cash against a fraction of their market value, keeps beneficial ownership and dividends subject to structuring, and recovers the position in full on repayment.
- Lombard loans are arranged against shares listed on the LSE (LSE).
- The pledge is not a sale: ownership, dividends, and the upside stay with the holder.
- Loan-to-value is calibrated to the specific position, funded in GBP or cross-currency.
- Structured under the FCA regime, with disclosure from 3%.
Eligible collateral and venues
Lombard Financing arranges facilities against equity listed on the principal United Kingdom venue: London Stock Exchange (LSE). Eligibility at the position level turns on the liquidity and free float of the specific line, its volatility, and the size of the holding relative to its typical traded volume — the same variables that drive the loan-to-value.
Regulator and disclosure
Shares listed in United Kingdom are regulated by Financial Conduct Authority (FCA). Substantial-shareholding disclosure is triggered from 3%, and a pledge over a large line is structured with that reporting regime in view so that the transaction remains discreet and compliant. Where a holding sits near a control or takeover threshold, the structure is arranged to avoid disturbing the position.
Funding, custody, and structuring
Facilities are typically arranged for a tenor of twelve to thirty-six months, funded in GBP or in another currency on a cross-currency basis. Throughout the facility the pledged shares are held by a qualified custodian under bankruptcy-remote arrangements, so the security is clean and the holder’s ownership is preserved. Non-recourse, limited-recourse, and full-recourse structures are available, and the choice interacts with the loan-to-value and the pricing.
| Listing venue(s) | London Stock Exchange (LSE) |
|---|---|
| Regulator | Financial Conduct Authority (FCA) |
| Currency | GBP (cross-currency available) |
| Disclosure threshold | From 3% substantial-holding disclosure |
| Principal indices | FTSE 100, FTSE 250, FTSE All-Share |
| Indicative tenor | 12–36 months, renewable by agreement |
| Recourse | Non-recourse / limited-recourse / full-recourse |
Considering a Lombard loan against a United Kingdom-listed position?
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Disclosure and regulation
A Lombard loan against a London-listed holding leaves legal title and the vote with the client, so the pledge itself does not ordinarily prompt a filing. What governs is the FCA regime: under DTR 5 a substantial holder notifies at 3% and at every whole percentage point above — finer granularity than most markets — so only a transfer of voting rights, such as on enforcement, would become visible. For a client sitting near a notification band, or within reach of the UK Takeover Code, we shape the credit and any collateral top-ups so that control of the position stays with the family throughout.
An illustrative example
By way of illustration, a private client holding £40 million of a FTSE 100 constituent might draw a Lombard loan at 55% loan-to-value, within our disclosed 20–65% range, releasing about £22 million. The shares stay registered to the client, dividends and votes are undisturbed, and the facility can be drawn in sterling or switched to the currency where the family spends. Figures here are rounded and purely hypothetical, meant to convey the shape of a facility rather than any quoted rate or term.
Illustrative only — not an offer, a quotation, or a commitment to lend.