London Stock Exchange Group's £300 million retail bond
The information contained herein may only be released, published or distributed in the United Kingdom, Jersey, Guernsey and the Isle of Man in accordance with applicable regulatory requirements. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this document. The Bonds may only be sold in Jersey in compliance with the provisions of the Control of Borrowing (Jersey) Order 1958.
Any offer for subscription, sale or exchange of the Bonds within the Isle of Man must be made (i) by an Isle of Man financial services licenceholder licensed under section 7 of the Financial Services Act 2008 to do so or (ii) in accordance with any relevant exclusion contained within the Regulated Activities Order 2011 or exemption contained in the Financial Services (Exemptions) Regulations 2011.
London Stock Exchange Group’s £300 million retail bond
· Strong demand for Group’s first retail bond
· Offer size of £300 million, the largest corporate bond to be issued through ORB to date
· Offer period closed six days early
· Bonds to be traded on ORB
London Stock Exchange Group plc (“LSEG” or the “Group”) has today announced that the offer period for its 9 year sterling denominated 4.75% bonds (the “Bonds”), which began on 16 October has now expired. The final offer size of £300 million, will make this the largest corporate bond to be issued through London Stock Exchange’s Order book for Retail Bonds (ORB) to date. The issue will bring the total amount raised on ORB, since the market was established two years ago, to over £2.5 billion.
The Bonds, which are the first from LSEG to be made available to retail investors, are expected to be issued on 2 November 2012. The offer period for the Bonds was closed six days early following strong demand for the issue. The issue is part of the Group’s on-going debt management programme and reflects its prudent approach to ensure a diversified source of funding to support the Group’s strategy. Following the issue, investors can, through their stockbroker, buy and sell the Bonds on ORB during market open hours in multiples of £100, subject to market conditions.
Xavier Rolet, CEO, London Stock Exchange Group, said:
“I am delighted that our inaugural bond on ORB has been so well received. The support of retail investors and retail brokers has been fantastic and this will be the largest corporate bond issue on ORB to date.
“Closing an offer of £300 million six days early also demonstrates the continuing strong appetite from retail investors for tradable bonds.
“We launched ORB just 2 years ago, and already it has successfully raised over £2.5 billion for businesses across a wide range of sectors. At the same time ORB has also given retail investors access to an attractive new asset class. We very much look forward to welcoming further new issuers to this flourishing market”.
Barclays, Lloyds Bank and The Royal Bank of Scotland acted as Joint Lead Managers on the issue.
Authorised Distributors for the issue were: Barclays Stockbrokers, Charles Stanley, Killik & Co., Halifax Share Dealing, Hargreaves Lansdown, Numis Securities, Peel Hunt, Redmayne-Bentley LLP, Selftrade (execution only), Shore Capital, Smith and Williamson, and Stocktrade (a division of Brewin Dolphin).
Further information on the Bonds can be found at: http://www.londonstockexchangegroup.com/investor-relations/investor-relations.htm
For further information, please contact:
Lucie Holloway Press Office +44 (0)20 7797 1222
Notes to editors:
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 UK and Russian derivatives trading, 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 access to an extensive range of real-time and reference data products and market-leading post-trade services. The Group is also home to a world leading index provider FTSE, which creates and manages over 200,000 equity, bond and alternative asset class indices.
Headquartered in London, United Kingdom with significant operations in Italy and Sri Lanka, the Group employs around 1,900 people.
Further information on London Stock Exchange Group can be found at www.londonstockexchangegroup.com
About the Bonds
· The Bonds may not be suitable for all investors. Investors should ensure they fully understand the risks and seek independent financial advice
· Investors should note that the price of the Bonds can rise and fall during the life of the investment and the price of the Bonds could fall below the face value of £100
· In the event that London Stock Exchange Group plc defaults under the Bonds, becomes insolvent or goes out of business, investors may lose some or all of their investment.
This announcement is an advertisement and not a prospectus for the purposes of EU Directive 2003/71/EC (the "Directive") and/or Part VI of the Financial Services and Markets Act 2000. The Offering Circular dated 11 October 2012 (“Offering Circular”) and the Final Terms together constitute the full information published or otherwise available in relation to the offer of the Bonds by London Stock Exchange Group plc and investors should not subscribe for any bonds referred to in this announcement except on the basis of the information contained or incorporated in the Offering Circular and the Final Terms. Investors may obtain copies of the Offering Circular and the Final Terms on the website of the Regulatory News Service operated by the London Stock Exchange.
The offering and the distribution of this announcement and other information in connection with the offer in certain jurisdictions may be restricted by law and persons into whose possession this announcement or any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase. Any purchase of Bonds pursuant to the offer should only be made on the basis of the information contained in the Offering Circular and Final Terms, available as described above.
The Bonds have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and include Bonds in bearer form that are subject to certain U.S. tax law requirements. Subject to certain exceptions, the Bonds may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons. The Bonds are being offered and sold outside of the United States in reliance on Regulation S of the Securities Act. There will be no public offering in the United States.