FTSE 250 firm St Modwen Properties has launched a seven-year retail bond paying 6.25%.
The bond will pay a fixed rate of interest of 6.25% every year, payable twice yearly in May and November. The bond will mature on 7 November 2019.
St Modwen invests in UK property. Its £1.1 billion portfolio is split into income-producing investments, residential land and commercial land and development.
The company claims that it has a 25-year track record of adding value to its landbank by managing schemes through the planning process, remediating contaminated land and active asset management. The retail bond is the first one the company has issued.
Bill Oliver, chief executive at St Modwen Properties, comments: "With significant headroom on our existing debt facilities, the retail bond will provide St Modwen with more diversity in its funding sources, without increasing our gearing."
The offer period for the bond opened on 17 October and is expected to close at noon on 31 October. Once it is listed on the London Stock Exchange's Order Book for Retail Bonds, investors will be able to buy and sell the bond during market hours through a stockbroker.
The bond has a minimum initial subscription amount of £2,000 and in multiples of £100 thereafter.
This article was written for our sister website Money Observer