10 Mar 2011 14:17
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Provident Financial plc
10 March 2011
Provident Financial plc Launches Retail Bond
Provident Financial plc is launching a 7.5% bond redeemable in 2016 aimed at retail investors. This is the second such bond to be issued by Provident Financial plc, following the successful issue of retail bonds in April 2010. The bonds can be bought and sold by investors exclusively through stockbrokers or wealth managers with a minimum initial subscription amount of £2,000, and in multiples of £100 thereafter.
The bonds pay a fixed gross rate of interest of 7.5% per year until September 2016. During its life, investors can sell the bonds at any time (during market hours and in normal market conditions) on the open market through their stockbroker. The bonds will be listed on the London Stock Exchange (LSE) and will trade on the LSE's Order book for Retail Bonds.
If a customer has, or is eligible to set up, a Stocks & Shares ISA or a SIPP which can hold bonds, depending on their individual tax circumstances and subject to any future changes in legislation, they should be able to earn the interest tax free.
The bonds are being issued off Provident Financial plc's £2,000,000,000 EMTN programme and are unconditionally and irrevocably guaranteed by Provident Financial Management Services Limited, Provident Personal Credit Limited, Greenwood Personal Credit Limited and Provident Investments plc.
The bonds are expected to be issued on 31st March 2011 and interest will accrue from this date. Interest is paid in half-yearly instalments and the bonds are intended to return 100% of the face value of £100 on maturity, before dealing costs.
The Provident Financial plc bond is not covered by the Financial Services Compensation Scheme (FSCS). In the event that Provident Financial plc defaults or becomes insolvent, customers may lose some or all of their investment.
Andrew Fisher, Finance Director of Provident Financial plc commented "Following our successful bond issue in April 2010, I am delighted that this market has continued to develop and grow. This market provides additional choice for retail investors and, through our ongoing activity in this market, will enable the Group to continue to diversify its funding."
For enquiries please contact:
Media
David Stevenson, Provident Financial 01274 351351Eilis Murphy, Brunswick 020 7404 5959
Debt Investor Relations
Phil Shepherd, Provident Financial 01274 351566
Notes to editors:
- The bonds may not be suitable for all investors. Customers should ensure they fully understand the risks and seek independent financial advice.
- Investors should note that the price of the bonds can rise and fall during the life of the investment and the price of the bonds could fall below the issue price of £100.