ICG unveils second retail bond, paying 6.25%


Intermediate Capital Group has launched its second retail bond, paying a fixed coupon of 6.25%.

The bond will mature in September 2020 and will pay interest twice a year, in March and September.

The launch follows ICG's first retail bond issue in December 2011, which paid a coupon of 7%.

ICG is a fund manager and specialist lender that is listed on the FTSE 250.

Welcome return

Philip Keller, managing director and chief financial officer of the firm, comments on the launch: "Following the positive performance of our first retail bond last December we are pleased to return to the market with this second launch. Given the company's strong balance sheet we believe that this bond provides an excellent opportunity to invest in the group at an attractive level."

The bond offer is expected to remain open until 12 September but may close earlier. They are expected to issue on 19 September and to trade on the London Stock Exchange's Order Book for Retail Bonds.

Once issued, the price of the bond will fluctuate. Although the coupon remains fixed, changes to the price will affect the yield for investors buying the bond after it has been issued. Investors can buy or sell the bond at any time on the open market once it has been issued.

The bond is a corporate bond, rather than a savings bond, which means that should ICG default or become insolvent, investors may lose some or all of their investment.

This article was written for our sister website Money Observer