The UNITE Group PLC join the Order Book for Retail Bonds

The UNITE Group PLC join the Order Book for Retail Bonds

Thursday 13th December 2012

London Stock Exchange welcomes The UNITE Group PLC, the UK's leading provider of student accommodation and constituent of the FTSE250 index, to its Order Book for Retail Bonds, with the launch of its 6.125% 2020 debut retail bond, which raised £90 million.

With a portfolio worth £1.3 billion, UNITE delivers high quality modern homes to over 42,000 students in 130 properties in 23 UK cities.

Mark Allan, Chief Executive Officer, The UNITE Group PLC, commented:

"We are delighted to have accessed a new source of finance and diversified the profile of our debt. We believe that the positive response from investors, enabling us to raise more than our initial target, demonstrates the strengths of UNITE’s mature business model and its record of income generation.”

Gillian Walmsley, Head of Fixed Income at London Stock Exchange, said:

“We are delighted to welcome The UNITE Group’s retail bond to market. ORB continues to go from strength to strength with almost £1.5 billion raised on the platform this year alone. We have seen a growing number of recent issues from a diverse range of companies, demonstrating the continued appetite from the private investor community for tradable bonds.”

Chris Babington, Joint Lead Manager, Investec Bank plc commented:

“This successful issuance from UNITE achieved exactly what they set out to do: they raised long dated committed capital to diversify their sources of debt funding. The UNITE success is particularly encouraging because the bond was launched at the same time as issues from two other companies, demonstrating that the market is increasingly mature and that demand for retail products that offer investors protection and attractive yields has remained strong.”

Oliver Cardigan, Joint Lead Manager, Numis Securities commented:

“We are delighted to have acted on the UNITE £90m retail bond. The success of the offer underlines the attraction of this market for companies looking to stretch out their debt maturity and diversify the sources of funding. It also highlights the depth of retail investors’ appetite for strong corporate yield. This was particularly the case as the bond offer overlapped with the successful retail bond issue by Tullett Prebon.”