News

13th Mar

City Profile appointed by new retail bond association

City Profile has been appointed as the corporate communications adviser to ORBIG, (Order Book for Retail Bond Issuer Group) the new association set up by listed companies that have issued Retail Bonds on the LSE’s Order Book for Retail Bonds.The main aims of the association are to help promote and explain the growing Retail Bond sector to the media and the wider investment community 

Retail Bonds are becoming increasingly popular with private investors who are keen on a steady income stream from their investments. The bonds can be bought and sold in small denominations and can be held in a tax-efficient wrapper such as an ISA.

Tesco and National Grid are among the larger firms to have issued them. This has now widened and a growing number of mid-sized companies have also issued bonds. Once launched, the bonds are listed on the London Stock Exchange and can be traded electronically.

ORBIG is being chaired by Richard Tice, who is the Chief Executive of quoted real estate group CLS Holdings plc. CLS Holdings itself raised £65 million in 2012 by issuing a retail bond to private investors paying 5.5% a year. The City Profile team working with ORBIG will be led by Simon Courtenay, Managing Director.

In February 2010 the London Stock Exchange launched the Order book for Retail Bonds (ORB) in response to increasing private investor demand for easy access to the corporate bond market. The ORB is an electronic trading platform offering investors a cost effective, transparent and efficient trading mechanism.

ORB has now established itself as a strong platform for companies seeking alternative sources of funding. Over £3 billion has been raised so far, £1.5 billion of which was raised in 2012. The growing popularity of retail-sized bonds has been reflected in the increasing number of mainly listed issuers that have successful issued bonds on ORB.

Richard Tice, Chairman of ORBIG said,

“ORBIG has been set up to create a single voice to represent the companies that have issued Retail Bonds on ORB. The market has grown quickly and has the potential to grow to become much, much larger. In time this could well develop to become a very important source of funding for UK companies.”

Simon Courtenay, Managing Director of City Profile commented,

“Retail Bonds have emerged as a popular class of investments with individual investors seeking steady income. Also the sector has developed as a serious alternative method of funding for many companies. We are delighted to be working with ORBIG as it increases the understanding of retail bonds in the media and with potential investors.”

Additional information can be found on the dedicated website orbig.co.uk

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