27/06/2011 The London Stock Exchange welcomes Places for People to the Order book for Retail Bonds
The London Stock Exchange today welcomes the latest listing of a new bond on its Order book for Retail Bonds (ORB). Places for People, one of the UK’s largest housing groups, has raised £140 million from private investors, almost three times its original target of £50 million.
The organisation, one of the largest property management, development, and regeneration groups in the UK, is the first of its type to issue a retail bond on the ORB, which is tradable in denominations of £100 and offers an annual coupon of five per cent. It will mature in December 2016.
To mark the occasion Xavier Rolet, Chief Executive of London Stock Exchange Group, joined David Cowans, Chief Executive of Places for People and Alex Snow, Chief Executive of Evolution Securities to open the London Stock Exchange this morning.
Steve Binks, Group Finance Director at Places for People said:
"We’re delighted at the levels raised and the extent of over-subscription We believe the success of the bond marks an important move towards a more creative and innovative financing structure for the housing association sector. It shows that there is a strong appetite for individual investment in a sector which has a good credit rating, stable cash flows, and strong financial viability."
Pietro Poletto, Head of Fixed Income at London Stock Exchange Group, said:
"The listing of Places for People’s bond will give private investors simple, transparent access to a completely new kind of issuer on the ORB, and allow them to support an organisation doing vital work in communities across the UK. The oversubscription we have seen with this bond highlights the strength of private investor appetite for this kind of issuance in the UK. We are delighted to welcome them today, and look forward to facilitating further issuance from an increasingly broad range of issuers in the future."
The ORB was launched in February 2010 in response to strong private investor demand for greater access to fixed income. The number of bonds available for trading on the platform has grown to 148. There are corporate, government and supranational bonds available, which are tradable in typical denominations of £1,000 or less. All are exempt from stamp duty and those maturing in five years or more are eligible for inclusion in ISAs and SIPPs. Full prospectus details and final terms for each security are available on the London Stock Exchange's website.