25th Oct

London Stock Exchange Group’s Issues Largest Bond to Date through ORB

The London Stock Exchange Group plc (LSE) has today announced that the offer period for its 9 year sterling denominated 4.75% bond, which began on 16 October has now expired. The final offer size of £300 million will make this the largest corporate bond to be issued through LSE’s Order book for Retail Bonds (ORB) to date. The issue will bring the total amount raised on ORB, since the market was established two years ago, to over £2.5 billion.

The bond, which is the first from LSE to be made available to retail investors is expected to be issued on 2nd November 2012. The offer period was closed six days early following strong demand for the issue. The issue is part of the group’s on-going debt management programme and reflects its strategy to ensure a diversified source of funding to support development. Following the issue, investors can, through their stockbroker, buy and sell the bonds on ORB during market open hours in multiples of £100, subject to market conditions.

Xavier Rolet, CEO, London Stock Exchange Group, said:

“I am delighted that our inaugural bond on ORB has been so well received. The support of retail investors and retail brokers has been fantastic and this will be the largest corporate bond issue on ORB to date.

“Closing an offer of £300 million six days early also demonstrates the continuing strong appetite from retail investors for tradable bonds.

“We launched ORB just 2 years ago, and already it has successfully raised over £2.5 billion for businesses across a wide range of sectors. At the same time ORB has also given retail investors access to an attractive new asset class. We very much look forward to welcoming further new issuers to this flourishing market”.

Barclays, Lloyds Bank and The Royal Bank of Scotland acted as Joint Lead Managers on the issue.

Authorised Distributors for the issue were: Barclays Stockbrokers, Charles Stanley, Killik & Co., Halifax Share Dealing, Hargreaves Lansdown, Numis Securities, Peel Hunt, Redmayne-Bentley LLP, Selftrade (execution only), Shore Capital, Smith and Williamson, and Stocktrade (a division of Brewin Dolphin).

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