IPF launches its second retail bond of 2013
FTSE 250-listed company International Personal Finance has launched an unsecured seven-year retail bond, which pays a coupon of 6.125 per cent.
This will be the second offering from the company, which also listed a retail bond on the London Stock Exchange’s ORB back in April this year, as reported by Money Observer.
IPF raised £70 million with its previous issue and will be consolidating the two bonds to form a single series. Both will pay a coupon of 6.125 per cent semi-annually in equal instalments and are due to mature 8 May 2020.
IPF is a doorstep based lending group, which operates primarily in eastern Europe; it was the international division of Bradford-based Provident Financial, which provides ‘non-standard’ loans, until a demerger in 2007.
Gerard Ryan, Chief executive officer of IPF, says the additional issue is ‘another step forward’ in the company’s ‘strategic objective of diversifying funding’.
‘Our retail bond this year was heavily oversubscribed and re-opening this bond issue gives investors who missed out another opportunity to invest,’ says Ryan.
He adds that the second issue will also bring the added benefit of increased liquidity.
The offer period is expected to close on 15 November. The minimum investment is £2,000 with further purchases available in multiples of £100.