3rd Oct

A2D Funding Raises £150m in Record Time

Housing association, A2D today announced that the 4.75% retail bond maturing in 2022 it launched just two days ago would close at 12.00 noon today (3rd October) resulting in disappointment for all but the very quickest on the draw. 

Retail Bond Expert assumes that the bond attracted investment at the upper limit of the £115 - £150m range set by the company at the beginning of the offer period, and proves the ongoing attraction of well-priced, and particularly rated corporate debt. 

With interest rates remaining at historically low levels, income-starved savers and investors appear to have snapped up the bond in record time, which could trigger increased activity from companies looking to raise capital and reduce dependence upon bank funding. 

A2D’s bond is just the seventh to be launched on ORB in 2013, and its success serves to confirm the appetite that exists within the market. 

Retail Bond Expert has been made aware in the past that there are two significant peaks in purchasing activity, particularly amongst retail investors, in the offer period of a bond – metaphorically at ‘opening time’ and ‘last orders’. 

Investors that were anything less than quick out of the blocks may have been caught out by such a dramatically truncated offer period, with a possible explanation being that wealth managers have showed greater support on the basis of the bond’s AA- Fitch rating. 

Retail Bond Expert would like to hear from you if this was an offer that you decided to purchase immediately, or possibly missed out on because you were still getting to grips with key documents and coming to a decision.   

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