Ford's FCE Bank unit has issued the first sterling corporate bonds direct to the retail public. Th...
Ford's FCE Bank unit has issued the first sterling corporate bonds direct to the retail public.
The issue is available via InterNote, a trading platform which allows groups to offer their bonds direct to retail investors. The bonds offer a coupon of 6.75% payable on a bi-annual basis, maturing on 15 September 2009.
InterNotes are sold on a continuously offered basis, with all the companies on the platform offering a certain amount of debt each week based on investor demand, with varying coupon and maturity profiles.
The other issuers on the platform, Bank of America and Landesbank Baden-Wuerttemberg are expected to begin issuing in euros, dollars and sterling at the end of September and in mid-November respectively.
With a minimum investment of e1,000, £1,000 or $1,000, InterNotes are offered to the market at par price with a set coupon and redeemed at that price. Advisers buy the notes at a discount to par, at 99.3p for a 100p bond, for example, and sell it on to their clients at par, taking the difference as their remuneration.
Incapital Europe launched the InterNote platform into the European market in April, with Ford's FCE Bank the first issuer. Incapital Europe is the London-based subsidiary of Incapital Holdings LLC, which has underwritten more than £20bn of InterNotes for the US market since it launched the system in 2001.
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards