17th Mar 2015 10:10
LONDON (Alliance News) - Provident Financial PLC Tuesday said it intends to issue sterling bonds that are expected to mature in between eight and ten years' time, with the offer to be open to retail investors.
In a statement, Provident Financial said the bonds will carry a coupon of between 5.00% and 5.25%.
The specialist lender, which provides home credit, online loans and vehicle finance to borrowers in the UK that may not be served by mainstream banks, is issuing the bonds under its GBP2.00 billion euro medium-term note programme.
The desired size of the bond issuance has not been disclosed.
Fellow FTSE 250 constituent International Personal Finance PLC, which provides home credit in emerging markets, also last week revealed its intention to issue sterling bonds under a similar scheme. It expects its bonds to have a maturity of between seven and nine years and a coupon of between 5.50% and 5.75%.
Provident Financial shares were down 0.9% at 2,741.00 pence on Tuesday morning. The stock is up by about 12% so far in 2015.
International Personal Finance shares were up 0.2% at 440.90 pence on Tuesday. The stock is down 1.5% in the year to date.
By Samuel Agini; [email protected]; @samuelagini
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