Tullett Prebon unveils 5.25% retail bond

24 November 2012

Inter-dealer broker Tullett Prebon has launched a retail bond, which matures in six and a half years, and pays a coupon of 5.25%.

The FTSE 250 listed company is one of the world's largest inter-dealer brokers and is BBB-rated by credit rating agencies. Lauren Charnley, spokesperson for Redmayne-Bentley, one of the stockbrokers participating in the issue, says the bond may appeal to the more risk averse investor it has categorised the issue as low-medium risk.

However, the issue comes hot on the heels of recent retail bonds with higher coupons, which may be more attractive to investors in this market. Charnley counters: "Tullett's BBB bond rating gives it a unique selling point in comparison to its unrated peers."

Interest will be paid semi-annually, on 11 June and 11 December of each year until its maturity in June 2019, with the first coupon payment on 11 June 2013.

Minimum investment is £2,000, with higher purchase amounts in increments of £100.

The company has a market capitalisation of £476.6 million and has had a fairly volatile year with share prices fluctuating between a high of 356p and a low of 219p in the last 52 weeks - currently shares are at 224.8p. The company expects a pre-tax profit of £118.7 million this year, down from £130 million last year.

The bond is eligible for inclusion in an ISA, JISA, child trust fund or SIPP.

This article was written for our sister website Money Observer

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