Search
 

UK Retail Bond Market Finds its Footing

More UK companies, especially mid-caps, sell debt aimed at retail investors. (National Grid's Malcolm Cooper)

By Rebecca Brace | Updated on September 06, 2012

Malcolm Cooper of National GridMarketing corporate debt directly to retail investors, a well-established practice in the United States, is just getting started in the UK. The market effectively opened in 2010 when the London Stock Exchange launched its Order book for Retail Bonds (ORB), a service via which retail bonds can be traded in denominations of 1,000 pounds.  After raising only 230 million pounds in its initial year, the market showed dramatic growth in 2011 with total issuance of more than 1.2 billion pounds. So far 2012 hasn’t quite matched this pace; as of the end of August, the UK market had raised 635 million pounds, bringing total issuance since the market opened to over 2 billion pounds.

“This year has begun a little slower than expected,” says Toby Croasdell, director of the medium-term note syndicate at Barclays in London. “Especially as yields have compressed, a number of potential borrowers have been sidelined. But in the last few months, we have started to see the increase in breadth of issuers which the investor community has been keen for. This has been led by new names, many of whom have been mid-cap companies rather than the big FTSE 100 names.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.