Wonga eyes first bond issue

Wonga is eyeing a debt issue in order to boost its business lending arm.

The online short-term lending company has so far been financing itself through equity from its founders and private investors, but is hoping that raising a bond will prove cheaper. Wonga for Business, which lends up to £15,000 to small businesses at a rate of 26 per cent, opened in May. However, the business has got off to a slow start, sources close to the company say.
Chief executive Errol Damelin is understood to be looking at the debt issue, which could raise hundreds of millions of pounds, in mid 2013.

The company did not comment.