Three new retail bond listings in two weeks

  • Lloyds TSB lists 5.50% corporate bond
  • EIB admits 3.25% supranational bond
  • Provident Financial 7.50% corporate bond available for ‘When-Issued-Dealing'[1]

London Stock Exchange Group today welcomes the listing of a new bond to its Order book for Retail Bonds (ORB), the third such product to be launched on the platform in the last two weeks. The bond, issued by Lloyds TSB is also the fifth to be launched specifically for ORB so far this year. These bonds include:

Issuer

Coupon

Maturity

Trading Denomination

Tradable on ORB from

Lloyds TSB

5.50%

25/09/2016

£1001

25/03/2011

Provident Financial

7.50%

30/09/2016

£100

25/03/20112

European Investment   Bank

3.25%

07/12/2016

£100

11/03/2011

Tesco Bank plc

5.20%

24/08/2018

£1003

21/02/2011

Royal Bank of Scotland   plc

3.30%4

01/02/2018

£100

17/01/2011

1. £1,000 minimum investment
  2. Unconditional dealing from 31/03/2011
  3. £2,000 minimum investment
  4. Increases incrementally each year to a maximum of 8.55% in the final year


Pietro Poletto, Head of Fixed Income at London Stock Exchange Group, said:

"The launch of these new products demonstrates that bond issuers are increasingly looking to use our fast-growing ORB market to access a private investor audience. As ORB continues to establish itself as an attractive venue for the listing of debt, we look forward to welcoming a greater number of bonds from an increasingly diverse range of issuers, and to encouraging private investor participation in the debt market."

Peter Green, Assistant Director, Senior Issuance at Lloyds Banking Group, said:

"We are delighted with the high level of interest in our latest retail bond. The strong demand we have seen indicates that private investors are beginning to realise the alternative investment options available to them. The ORB plays an incredibly important role in making corporate bonds more accessible to private investors and we are pleased to support the London Stock Exchange in the development of this market."

Andrew Fisher, Finance Director at Provident Financial plc, said:  
 
"As one of the very first issuers of a retail bond listed on the ORB platform last April, we are delighted with the significant demand for our second bond, totalling £50 million.  This adds to the group's programme of diversifying and lengthening the duration of its funding.  Most importantly, the breadth of support from brokers and retail customers has confirmed my belief that this market will be an important ongoing source of funding for Provident Financial."

Richard Teichmeister, Head of Sterling Funding at the European Investment Bank (EIB), said:  
 
"EIB welcomes the LSE's initiative to facilitate retail investors' access to debt products. Having established a sterling retail dealer group already in 2001, EIB's presence on the ORB platform is another step to increase our presence in the sterling retail market. The platform creates market transparency for retail accounts otherwise only available to institutional investors."

The ORB was launched in February 2010 in response to strong private investor demand for greater access to fixed income.  There are currently 146 corporate, government and supranational bonds available for trading on the platform, which are tradable in typical denominations of £1,000 or less. All are exempt from stamp duty and those maturing in five years or more are eligible for inclusion in ISAs and SIPPs. Full prospectus details and final terms for each security are available on the London Stock Exchange's website.

- ends -

For further information, please contact:

Jonny Blostone                                  Press Office +44 (0)20 7797 1222

                                                        newsroom@londonstockexchange.com

Notes to editors:

[1] When-Issued-Dealing:

Also called ‘conditional' dealing, When-Issued-Dealing is a period of dealing with deferred settlement. It takes place in securities which are due to be listed, but before they are officially admitted to trading. Trades during the When Issued period are conditional on the security being admitted to trading and settle once trading has become unconditional. The advantage of When Issued Dealing is that investors can trade a security as soon as its initial offer period has closed, rather than having to wait for it to admit to market.

About the Order book for Retail Bonds (ORB):

The Order Book for Retail Bonds (ORB) is the London Stock Exchange's electronic platform for private investors trading fixed income securities. The ORB offers continuous, transparent, two-way tradable prices in nearly 150 individual UK gilts, supranational and corporate bonds, all tradable in typical denominations of £1,000 or less. Introduced in February 2010 in response to strong demand from private investors, it offers issuers a high profile route to raise debt capital from a retail audience. For more information go to www.londonstockexchange.com/bondsmadeeasy

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) sits at the heart of the world's financial community. The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and Turquoise, offering pan-European and US lit and dark equity trading. Through its markets, the Group offers international business unrivalled access to Europe's capital markets.

The Group is a leading developer of high performance trading platforms and capital markets software and also offers its customers around the world an extensive range of real-time and reference data products and market-leading post-trade services. 

Headquartered in London, United Kingdom with significant operations in Italy and Sri Lanka, the Group employs around 1,500 people. Further information on London Stock Exchange Group can be found at www.londonstockexchangegroup.com