Property company launches 6% retail bond
Property investment company Helical Bar has launched a seven-year retail bond paying 6%.
The bond will be listed on the London Stock Exchange's Order Book for Retail Bonds, which means investors can buy and sell the bond during its seven-year term.
The minimum initial subscription from investors is £2,000, and interest on the bond will be paid twice a year. The bonds are eligible for stocks and shares ISAs. However, they are not covered by the Financial Services Compensation Scheme, should Helical Bar become insolvent during the seven-year term.
Michael Slade, chief executive of Helical Bar, comments on the launch: "We are excited to be launching our debut retail bond into a market which is growing as a result of strong private investor interest for bonds issued by companies with established track records. The launch of this bond will enable us to further diversify our funding sources and extends the debt maturity profile of the group."
Helical Bar is hoping to raise up to £75 million from the bond issue.
The company has a mixed portfolio of office and retail property across the UK. It has also developed shopping centres in Poland, and owns retirement villages and industrial buildings too.
Helical Bar is listed on the FTSE All-Share and has a market capitalisation of £308 million.
The bond offer is due to close on 18 June, with the bond listed on 24 June.
This article was written for our sister website Money Observer
A way of valuing a company by the total value of its issued shares and calculated by multiplying the number of shares in issues by the market price. This means the market capitalisation fluctuates continually as the value of the shares change in the market. For example, HSBC has 17.82bn shares in issue at a price of 646.2p making a market capitalisation of £115.15bn.