First oil company to launch 5.5% retail bond

Oil rig

Oil company EnQuest has launched a 5.5% retail bond, maturing in 2022.

The first retail bond issue of the year comes from the largest independent producer of oil in the UK North Sea, which is also a FTSE 250 company.

The coupon will be paid twice annually on 15 February and 15 August, with the first payment to be made 15 August 2013.

Minimum investment is slightly on the high side at £2,000,with further investment available in £100 increments thereafter.

The issue is available now and is expected to close 8 February 2013 and will be available on the London Stock Exchange's Order Book for Retail Bonds (ORB) from 15 February.


Amjad Bseisu, chief executive of EnQuest, says it is issuing the bond to allow it to diversify its funding base and "extend the tenor of its borrowings" to "complement its already strong balance sheet".

Being the first oil company to issue a retail bond, it also says it is glad to provide retail investors with a new choice of sector to invest in.

The company has not stated how much it wishes to raise with the issue but says demand has been strong so far.

This article was written for our sister website Money Observer