What is a bond?
Contributor: London Stock Exchange
A bond is essentially a loan you provide to a company or government in exchange for regular interest payments. Companies issue bonds to raise funds for expansion or new projects, while governments use them to finance infrastructure and other public services.
For example: if a company issues bonds in units of £10,000 at an interest rate of 6%, promising repayment in six years, purchasing one bond means you’ll receive £600 annually until your £10,000 is returned at maturity.
Bonds admitted to the London Stock Exchange benefit from robust rules and enhanced transparency, which are important considerations for investors. The Exchange operates two regulated markets: the Main Market, which is open to all investors, and the International Securities Market, designed for professional investors.
Access Bonds on the Main Market are debt securities available to UK retail investors under the FCA’s new prospectus rules. These include a wide range of instruments, from government gilts to supranational and corporate bonds. Learn more about Access Bonds.
To support secondary market liquidity, the London Stock Exchange also operates the Order Book for Fixed Income Securities (OFIS), an electronic platform for trading bonds and other debt instruments. Access Bonds can be traded on OFIS when supported by a market maker and purchased through broker platforms. Explore OFIS.
If you want to invest in Access Bonds available on OFIS, please contact an authorised broker or platform. Find a broker.
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