RBS Launches Sixth Retail Bond on ORB

RBS Launches Sixth Retail Bond on ORB

  • Inflation linked bond with 7 year maturity and 2% fixed coupon with the principal linked to RPI

The London Stock Exchange today welcomes a new RBS inflation linked bond onto the Order Book for Retail Bonds (ORB). This is the sixth bond to be issued by RBS on to the platform since launch.

The Inflation linked bond has maturity of seven years and a two per cent fixed coupon with the principal linked to RPI. The bond will be issued in £1,000 denominations.

Commenting on the new bond, David Stuff, UK Director of Listed Product Sales at RBS said:

"In a low and uncertain savings rate environment, combined with high inflation, it can be a challenge to find an investment with real returns. The UK Inflation Income Bond offers returns designed to meet the needs of private and institutional investors. There are no restrictions on large investment amounts and there are no early redemption charges beyond the bid/offer spread."

Pietro Poletto, Head of Fixed Income at London Stock Exchange Group said:

"RBS is the most frequent issuer on ORB and we are delighted to welcome their sixth retail-sized bond onto the market. There is a growing demand from private investors for new bonds and inflation linked products have proved popular this year.

"ORB continues to draw new bond issues to the market and is steadily creating a wide choice of products for retail investors. We have a strong pipeline of new issuers and look forward to seeing an ever diverse range of issues going forward."

The ORB was launched in February 2010 in response to strong private investor demand for greater access to fixed income investment. There are now over 150 bonds available for trading on the platform and over £1.25 billion has been raised since launch. 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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