Provident Financial issues 6% retail bond
Provident Financial has issued its fourth retail bond, with a coupon of 6%.
The Bradford-based money lender, which is listed on the FTSE 250, has launched the issue with an eight-and-a-half year duration, with applications open until 22 March.
The minimum investment is £2,000 and increments of £100 are allowed thereafter. Interest will be paid bi-annually on 27 March and 27 September, will the first coupon paid on 27 September 2013.
This most recent issue is actually the least generous of the company's offering, with previous coupons at 7% and 7.5%. These are all currently trading above their £100 issue price, the highest currently at £108.58.
Lauren Charnley, a stockbroker at Redmayne-Bentley, says: "With a proven track record in the retail bond market, there is good reason to believe that Provident Financial's latest offer will go down well with investors."
She adds that it may be of particular interest to those looking to top up their Isa before the end of the current tax year.
This article was written for our sister publication Money Observer
Invidivual Savings Accounts were introduced on 6 April 1999 to replace personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs) with one plan that covered both stockmarket and savings products, the returns from which are tax-exempt. The ISA is not in itself an investment product. Rather, it’s a tax-free “wrapper” in which you place investments and savings up to a specified annual allowance where the returns (capital growth, dividends, interest) are tax-exempt (you don’t have to declare ISAs and their contents on your tax return). However, any dividends are taxed within the investment, and that can’t be reclaimed.