News

25th Apr

The Jockey Club jumps into the market with 7.75% 'retail bond'

The Jockey Club, owner of Cheltenham, Newmarket and Aintree racecourses and the largest commercial group in British horseracing announced its best set of financial results ever and has used them as the springboard to launch the first ever ‘retail bond ‘ in British sport, 'The Jockey Club Racecourse Bond' 

The bond hopes to raise £15million from ordinary investors to help pay for a new £45million grandstand development at its flagship Cheltenham racetrack. 

The bond is set to pay 7.75% per year over at least five years with a minimum investment of £2000 and interest payments will be paid quarterly, but unlike recent bond issues only 4.75% of it will be paid in cash: the other 3%  will be in what it calls ‘Rewards 4Racing points’. These can be used for discounts for tickets, food and drink at the Jockey Club’s 15 racecourses around the country.   

However, the bond cannot be traded once taken out, so investors must also be confident that they can hold it for the entire five year term.

The bond launch is similar to those issued by John Lewis and Hotel Chocolat, which were marketed at loyal customers. Hotel Chocolat raised £3.7m from its Tasting Club members, and is paying them interest in bi-monthly deliveries of chocolate   

Unlike other retail bonds, none of these "loyalty bonds" are listed on the Order for Retail Bonds (ORB) market, run by the London Stock Exchange, so cannot be traded 

Simon Bazalgette, Group Chief Executive, The Jockey Club, said:   

"We recently announced plans for an exciting £45m development project at our flagship Cheltenham Racecourse. As part of its funding we are offering a unique investment opportunity through The Jockey Club Racecourse Bond, which should appeal for its generous cash interest, rewards to enjoy a day at the races and the chance to support Britain's second biggest sport.  

"Launching the first retail bond in British sport is a win-win for all; a highly-efficient means for us to raise capital, while also getting closer than ever before to our customers. I hope to report on its success in due course."   

The Jockey Club also posted record results for 2012 – including an eight per cent rise in turnover to £150.3million and a three per cent increase in operating profits to £19.8million.   

Interested investors can apply at www.racecoursebond.com

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