Places for People opens London Stock Exchange as retail bond begins trading
- Oversubscribed issue raises £140m
- UK housing group first issuer of its kind on the ORB
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. Evolution Securities, a key market participant on the ORB since its launch, acted as lead book-runner on the deal.
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 £1001 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, Group Chief Executive of Places for People, to open the London Stock Exchange this morning.
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.”
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.”
The Rt Hon Grant Shapps MP, Minister for Housing and Local Government said:
"Today's listing is timely recognition of the stable, viable investment opportunity that housing associations present.
We are looking to deliver 150,000 affordable homes over the next four years, and private investment has a key role to play in this. I welcome Place for People's taking the initiative and this bold step to generate more investment in the affordable homes this country needs."
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.
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For further information and photographs of the event, please contact:
Lauren Crawley-Moore / Press Office +44 (0)20 7797 1222
Ed Clark firstname.lastname@example.org
Notes to editors:
1. After a minimum investment of £2,000.
About the Order book for Retail Bonds (ORB):
The Order Book for Retail Bonds (ORB) is the London Stock Exchange’s electronic platform for private investors trading fixed income securities. The ORB offers continuous, transparent, two-way tradable prices in nearly 150 individual UK gilts, supranational and corporate bonds, all tradable in typical denominations of £1,000 or less. Introduced in February 2010 in response to strong demand from private investors, it offers issuers a high profile route to raise debt capital from a retail audience.
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 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 an extensive range of real-time and reference data products and market-leading post-trade services.
Headquartered in London, United Kingdom with significant operations in Italy and Sri Lanka, the Group employs around 1500 people. Further information on London Stock Exchange Group can be found at www.londonstockexchangegroup.com.