EXPLORER EnQuest yesterday unveiled a nine-year retail bond paying 5.5 per cent, becoming the first oil company to launch the product.
The bonds, which will mature on 15 February 2022, have a minimum initial subscription amount of £2,000.
They will also be admitted to the London Stock Exchange’s Order Book for Retail Bonds.
The bond issue comes just a day after the FTSE 250-listed oil explorer acquired an eight per cent stake in the Alba field in the North Sea.
EnQuest chief executive Amjad Bseisu yesterday hailed the company’s entrance onto the market.
“The bond will allow the company to diversify its funding base and extend the tenor of its borrowings and will complement our already strong balance sheet,” he added.
Yesterday City A.M. revealed that retail bonds providers are lobbying for them to be included in the government’s Financial Services Compensation Scheme.