Beazley Launches Retail Bond in ORB

Lloyd’s of London insurer Beazley has raised £75m from retail investors, following the issue of retail bonds via the London Stock Exchange’s (LSE) Order Book for Retail Bonds (ORB).

The transaction, which represents the first time that a global insurance company has launched a retail bond issue on the ORB, was advised and managed by Lloyds Bank Wholesale Banking and Markets.

The fixed rate bonds will pay a coupon of 5.375% each year until they mature in 2019. The target for fund raising was between £50m and £75m, with the issue meeting strong demand from retail investors. Lloyds Bank was able to close the transaction in eight days and ahead of schedule, securing the maximum figure required.

“We are seeing an increasing trend for corporates and financials to turn to fixed rate retail bonds, enabling companies to diversify their sources of funding and offer investors an attractive coupon and a relatively small commitment level,” said Christoffer Mollenbach, head of financial institutions (FI) debt capital markets (DCM) at Lloyds Bank Wholesale Banking and Markets. “The speed at which we were able to raise the funds clearly demonstrates strong investor appetite, with Beazley reaping the rewards for pursuing this alternative funding source.”

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