3rd Apr 2014 12:30
LONDON (Alliance News) - International Personal Finance PLC Thursday said it has completed a new EUR300.0 million 5.75% 7-year Eurobond issue due 2021, as part of its strategy to reduce cost, extend term, and diversify sources of debt funding.
The lender has also bought back EUR168.3 million of its existing 11.5% Eurobonds due 2015, in a move the company expects to result in an exceptional cost of about GBO20.0 million.
The EUR56.7 million of the existing Eurobonds due 2015 remain outstanding.
International Personal Finance said it is now reviewing its capital ratio.
The company has previously stated that its equity to receivables ratio target, currently at 50% remains under review, and that a catalyst for updating the capital ratio would be a reduction in funding costs following a refinancing of the core Eurobond, and stable macro-economic conditions.
"This is an important step in achieving our debt funding objectives. The halving of the interest rate to 5.75%, a reduction of 575 bps compared to the 11.5% Eurobond issued in 2010, continues the trend of materially reducing our cost of debt," Adrian Gardner, chief financial officer, said in a statement.
International Personal Finance shares were Thursday quoted at 547.50 pence, up 3.3%.
By Samuel Agini; [email protected]; @samuelagini
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