Retail Bond Issues

What are Retail Bond Issues?

Retail Bonds are another form of ‘new issue’ where companies look to raise extra capital by borrowing from the investor at a fixed rate for a set period. Like equity IPOs these new issues are typically introduced by companies looking to raise capital to expand their business, pay down debt, or finance other corporate activities.

Many new issues attract sizeable interest from private investors who may be looking to take advantage of demand on the primary market, before the security is bought on the secondary market, with the hope that the value of the investment will rise. However, investors must be aware that investing in new issues is not without risk and the value of your investment may fall significantly after the security is quoted on the open market.

Acces our educational videos for further information:

Before investing in new issues  this please read our allocation policy

 

Why would you invest in Retail Bond Issues?

In the current climate of low interest rates investors are looking for income yield from many sources. With retail bonds typically offering between 4% and 6% there are generally much more attractive than the high street bank.

But remember a higher yield typically comes with higher risk and remember to do your own research on the companies issuing bonds or seek independent advice.  When buying bonds, you should consider the issuer’s credit rating and their ability to repay their debt. This will have a direct bearing on the value of the investment. Should the issuer default, they may not make interest payments or be able to repay your money and your initial investment is at risk.

The market value of the bonds is subject to normal investment and market risks.  If you choose to sell your Bonds in the open market at any time prior to the Maturity Date, you may receive a lower price than what you paid for your initial investment. If you have any concerns about the suitability of this investment then you should contact a financial adviser.

Please note that corporate bonds are not covered by the Financial Services Compensation Scheme on default of the issuer

Why invest in Retail Bond Issues with Interactive Investor?

Simple. We will not charge a commission for you to invest in any new issue retail bond as we receive a fee by being a distributor for the issue. Furthermore, at Interactive Investor we have a constant ear to the ground for any new issues that are coming to the market so if you have an account with us we will keep you posted on any announcements of any companies going public.

Process for investing in Retail Bond Issues

When retail bond issues launch, they will follow the process set out below:

  1. Roadshow – As a first step, the company involved will present to a range of investors around the country, from retail brokers such as Interactive Investor, to IFAs and fund managers, to get a feel for the demand a new bond issue will create.
  2. Bond announced and Prospectus released – Usually within a few days of the roadshow, if the company decides to go ahead, it will release a Prospectus detailing the final terms of the bond offer in detail. Once the Prospectus and any supplementary information are released, they will be displayed on our site. Potential investors should read and digest the information fully before making any decision to invest.
  3. Offer Period – Once the offer period begins, our dealers will start taking orders from clients. Usually there is a minimum investment requirement of £1000-£2000. The offer will usually be open for a set period of around two weeks but quite often, if demand is high, the offer will close early.
  4. Offer Period closes – Once the offer closes our dealers will close the book for new orders. Clients will be informed about their allocations. Please be aware that you may not receive your full allocation as quite often new issues are oversubscribed and the offer scaled back. For further information please read our allocation policy.
  5. Bonds are admitted to the stock market, most often the LSE ORB (Order Book for Retail Bonds), at a par value of 100p. Commonly known as the secondary market, the bonds can now be freely traded during market opening hours and, as market forces dictate, the price may rise as well as fall.

Risk warning - investors must be aware that investing in new issues is not without risk and the value of your investment may fall significantly after the security is quoted on the open market.

Call us on 0845 200 36370845 200 3637  to participate in new issue retail bond offers. There is currently no electronic facility online to invest in these new issues.

Current Issues

There are currently no new issues available.

Closed Issues

Offer Type Name of issue Closing datesort icon Price
Fixed Income Places for People Finance plc 4.25% Retail Bond Friday, December 9, 2016 - 8am
 
Fixed Income CAF Retail Charity Bond Tuesday, March 29, 2016 - 9am
BidOfferChangeTrade
£110.85£113.25+0.40Buy
Launch priceChangeChart
£102.9757.65%View Chart
 
Fixed Income Alpha Plus 5% Secured 2024 Retail Bond Wednesday, March 23, 2016 - 11am
BidOfferChangeTrade
£104.20£106.75+0.28Buy
Launch priceChangeChart
£101.72.46%View Chart
 
Fixed Income Paragon Group 6% 2024 Retail Bond Friday, August 21, 2015 - 11am
BidOfferChangeTrade
£102.10£105.50-0.80Buy
 
Fixed Income Wasps Finance 6.5% Retail Bond due 2022 Wednesday, May 6, 2015 - 12pm
BidOfferChangeTrade
£104.55£106.85-0.30Buy
Launch priceChangeChart
£1004.55%View Chart
 
Fixed Income Hightown 4.4% 2025 Retail Charity Bond Friday, April 17, 2015 - 12pm
BidOfferChangeTrade
£105.60£109.85-1.72Buy
Launch priceChangeChart
£1005.60%View Chart
 
Fixed Income Intermediate Capital Group 5% 2023 Retail Bond Tuesday, March 10, 2015 - 12pm
BidOfferChangeTrade
£101.35£103.35-0.27Buy
Launch priceChangeChart
£1001.35%View Chart
 
Fixed Income Eros International Plc 6.5% Retail Bond due 2021 Wednesday, October 8, 2014 - 4pm
BidOfferChangeTrade
£73.250£76.500-0.58Buy
 
Fixed Income A2D Funding II Plc (A2 Dominion) 4.5% Sterling Retail Bond due 2026 Wednesday, September 10, 2014 - 8am
BidOfferChangeTrade
£106.70£108.75-0.72Buy
 
Fixed Income Burford Capital 6.5% 2022 Retail Bond Tuesday, July 29, 2014 - 10am
BidOfferChangeTrade
£106.05£108.00+0.27Buy
 
Fixed Income Golden Lane Housing 4.375% 2021 Retail Bond Wednesday, July 9, 2014 - 10am
BidOfferChangeTrade
£107.40£111.90-2.20Buy
 
Fixed Income Paragon Group 6.125% 2022 Retail Bond Offer Thursday, January 23, 2014 - 10am
BidOfferChangeTrade
£102.90£105.75-1.14Buy
 
Fixed Income Premier Oil 5% 2020 Retail Bond Thursday, December 5, 2013 - 12pm
BidOfferChangeTrade
£78.050£81.400+0.50Buy
 
Fixed Income EnQuest 5.5% 2022 Retail Bond Tap Issue Monday, November 25, 2013 - 3pm
BidOfferChangeTrade
£69.250£71.500-1.01Buy
 
Fixed Income International Personal Finance 6.125% 2020 Retail Bond Friday, November 15, 2013 - 12pm
BidOfferChangeTrade
£89.000£92.750+8.88Buy
 
Fixed Income A2D Funding Plc 4.75% 2022 Retail Bond Thursday, October 3, 2013 - 12pm
BidOfferChangeTrade
£108.25£110.35-0.80Buy
 
Fixed Income Bruntwood 6% 2020 Secured Retail Bond Wednesday, July 17, 2013 - 11am
BidOfferChangeTrade
£105.50£107.35-0.16Buy
 
Fixed Income Helical Bar 6% 2020 Retail Bond Wednesday, June 12, 2013 - 11am
BidOfferChangeTrade
£104.50£106.35-0.42Buy
 
Fixed Income International Personal Finance 6.125% 2020 Fixed Rate Retail Bond Monday, April 22, 2013 - 10am
BidOfferChangeTrade
£89.000£92.750+8.88Buy
 
Fixed Income Provident Financial 6% Retail Bond Thursday, March 14, 2013 - 4pm
BidOfferChangeTrade
£109.40£111.00-0.55Buy
 
Fixed Income Paragon Group 6.00% Bond Offer Friday, February 22, 2013 - 4pm
BidOfferChangeTrade
£103.75£107.00-0.16Buy
 
Fixed Income EnQuest Plc 2022 5.5% Retail Bond Friday, February 8, 2013 - 12pm
BidOfferChangeTrade
£69.250£71.500-1.01Buy
 
Fixed Income Alpha Plus Group Secured 5.75% 2019 Retail Bond Tuesday, December 11, 2012 - 12pm
BidOfferChangeTrade
£104.15£107.65+0.60Buy
 
Fixed Income Tullett Prebon 5.25% Sterling Retail Bond Wednesday, December 5, 2012 - 12pm
BidOfferChangeTrade
£103.00£105.25-1.03Buy
 
Fixed Income UNITE Group 6.125% Sterling Retail Bond Monday, December 3, 2012 - 10am
BidOfferChangeTrade
£108.30£110.25-0.16Buy
 
Fixed Income St Modwen Properties Plc 6.25% Sterling Retail Bond Wednesday, October 31, 2012 - 12pm
BidOfferChangeTrade
£104.85£106.85-0.10Buy
 
Fixed Income London Stock Exchange Group 4.75% Bond Offer Wednesday, October 24, 2012 - 10am
BidOfferChangeTrade
£111.25£112.65-0.25Buy
 
Fixed Income Workspace Group Plc 6% Sterling Retail Bond Tuesday, October 2, 2012 - 12pm
BidOfferChangeTrade
£105.55£107.25-0.05Buy
 
Fixed Income Beazley 5.375% Sterling Retail Bond Tuesday, September 18, 2012 - 10am
BidOfferChangeTrade
£104.75£107.15-0.08Buy
 
Fixed Income Intermediate Capital Group Monday, September 10, 2012 - 4pm
BidOfferChangeTrade
£105.30£107.75+0.46Buy
 

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Please be aware of the risks involved. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. Past performance is no guarantee of future performance. Tax treatment depends on your individual circumstances and may be subject to change. If in any doubt, please seek advice.

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