Places For People issues 10-year, RPI-linked retail bond
bondsPlaces_for_People Places For People HG has launched a new 10-year bond for retail investors, paying 1 per cent gross semi-annually, and adjusted to the Retail Price Index measure of inflation.
Evolution Securities is acting as lead manager on the issue.
A five-year retail bond issued by the group last year - a first for the sector - attracted £140 million of investors' money.
Inflation adjustments will be calculated by comparing the RPI level in May each year with the RPI level in May 2011, which was 5.2 per cent.
On maturity PFP will pay the full face value of the bonds, adjusted to take account of any overall increase in RPI; if RPI has fallen, the group will re-pay the bonds at no less than their full face value.
The offer period will close on 25th January; the bonds are expected to be issued on 30th January.
The minimum initial subscription is £2,000.
The bonds are being issued by Places for People Capital Markets plc and guaranteed by Places for People Homes through its £650 million Euro Medium Term Note programme.
They are expected to be rated Aa3 by Moody’s on issue.
They will trade on the London Stock Exchange's order book for retail bonds.
