HELICAL Bar has become the latest property firm to tap the retail bond market to raise around £75m to help repay debt and to diversify its sources of funding.
The property developer behind the regeneration of a vast 3.2 acre-site in the City next to St Bart’s Hospital has this week launched a seven-year retail bond paying a fixed interest rate of six per cent per year.
The bonds have a minimum initial subscription amount of £2,000 and are available in multiples of £100 thereafter.
Helical said it will use the proceeds from the bond issue – open until 18 June – to repay money borrowed under a revolving credit facility.
Chief executive Mike Slade said: “We are excited to be launching our debut retail bond into a market which is growing as a result of strong private investor interest for bonds issued by companies with established track records.”
“The launch of this bond will enable us to further diversify our funding sources and extends the debt maturity profile of the group,” he added.
There have been a string of bond launches by firms including Alpha Plus, the schools provider chaired by property grandee Sir John Ritblat and developer St Modwen.