The jet stream moves North and the dog days of summer finally lie languid and warm. Your bond correspondent stupefied by a long period of inertia slouches in a deck check and cogitates upon the garden. Suddenly the holiday inactivity in the retail bond market is broken as CLS Holdings steals a march on the expected flurry of new issues in September; your correspondent is forced to pick up his pen and we have the following:

Issuer:                       CLS Holding PLC
Coupon:                    5.5% semi annual
Denominations:     £100
Minimum Sub:        £2,000
Maturity:                  31st December 2019
ISIN:                          XS0820711215
Listing:                      London (ORB)
Status:                       Senior unsecured
Bookrunner:          Canaccord Genuity (Collins Stewart)
Closing date:         4th September (or earlier)

This is the first retail bond issue lead by Canacord Genuity who have recently built up a strong team in this area. Good luck to them.

Let us first look at the company. CLS, a property investment company (not a REIT) listed on the London Stock Exchange since 1994, holds a portfolio of commercial real estate in the UK and Northern Europe. Run by Swede Sten Mortstedt who controls a majority stake (55%), the company has an impressive track record. Some 40% of the property portfolio was sold before the 2008 crash and on a four year basis the shares have outperformed all others in their sector.

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