Botanic Purchase, an Irish property development company, is offering convertible loan stock paying 9...
Botanic Purchase, an Irish property development company, is offering convertible loan stock paying 9% commission to intermediaries. Graeme de Renzy, chief executive officer of Botanic Purchase, said the high level of intermediary commission offered is down to the group being unknown in the UK, although he believes the appointment of FSA-regulated Computershare as registrars for the loan stock will assuage many intermediaries' concerns.
Tracey Mullins, spokeswoman for Aifa, said although the commission offered is unusually high, companies are free to offer whatever levels they see fit. Rob McIvor, spokesman for the FSA, said commission is a commercial matter and consequently beyond its remit. According to de Renzy, the unsecured loan note units are expected to pay out a rate equal to the amount invested plus 1.5 times that amount, multiplied by the investment period and divided by 19.
On this basis, a £10,000 investment placed in February 2002 would be worth £23,421.05 upon redemption on 30 June 2003, with intermediary commission of £900 payable. There is no minimum investment period and assets are fully transferable, with a proviso that investors obtain written consent from Botanic.
Went into administration April 2018
Threat of legal action looms over Woodford IM
View from the front row
Retirement Planner Forum 2019