Press releases 2010

48/10
10 December 2010
New Inflation Multiplier bond on retail bond market

The London Stock Exchange’s Order book for Retail Bonds (ORB) this week welcomes a new retail bond from Royal Bank of Scotland (RBS). The bond is the first multiplier bond to be made available on ORB and is designed to help investors benefit from rising UK inflation.

The RBS Inflation Multiplier bond, tradable in denominations of £100, has a quarterly coupon equivalent to 1.3 times the rise in the UK Retail Price Index (UK RPI). If UK inflation falls or remains flat, no coupon payment is made for that period.

Pietro Poletto, Head of Fixed Income Markets at London Stock Exchange Group, said:

“We are delighted to welcome this new bond, issued specifically for trading on our ORB platform. By allowing investors to benefit during periods of high inflation, it further diversifies the range of products which can easily be bought and sold on our new retail bond market.”

The new bond is the latest in a series of recent retail-sized issues by RBS which are based on UK RPI and LIBOR rates. It matures in December 2020.

The ORB was launched in February 2010 in response to strong private investor demand for greater access to fixed income. It now offers trading in 142 corporate, government and supranational bonds, all of which are exempt from stamp duty.

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For further information, please contact:

Jonny Blostone                                  Press Office +44 (0)20 7797 1222

                                                            newsroom@londonstockexchange.com

 

Notes to editors:

About the Order book for Retail Bonds (ORB):

The Order Book for Retail Bonds (ORB) is the London Stock Exchange’s electronic platform for private investors wanting to trade fixed income securities. ORB offers continuous, transparent, two-way tradable prices in nearly 150 individual UK gilts, supranational and corporate bonds, all tradable in typical denominations of £1,000 or less. Introduced in February 2010 in response to strong retail demand, it offers issuers a high profile route to raise debt capital from a private investor audience.

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) sits at the heart of the world’s financial community. The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and Turquoise, offering pan-European and US lit and dark equity trading. Through its markets, the Group offers international business unrivalled access to Europe’s capital markets.

The Group is a leading developer of high performance trading platforms and capital markets software and also offers its customers around the world an extensive range of real-time and reference data products and market-leading post-trade services. 

Headquartered in London, United Kingdom with significant operations in Italy and Sri Lanka, the Group employs around 1500 people. Further information on London Stock Exchange Group can be found at www.londonstockexchangegroup.com.