Grafton pulls retail bond issue after investor demand dries up

Michael Bow
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BUILDERS merchant Grafton Group has shelved a retail bond issue after a sharp reversal in investor sentiment toward bond investment.

The offering, which would have paid a 5.5 per cent coupon and matured in 2020, was launched two weeks ago but a lack of investor uptake over the period forced the group to call time on the issue.

An insider said a swing in sentiment away from fixed income products since US Federal Reserve chairman Ben Bernanke announced plans to rein in quantitative easing about a fortnight ago had affected the bond issue.