(April 27): The London Stock Exchange Group Plc has converted £1.4 billion of bonds into a new format designed to make corporate debt more accessible to retail investors.
It’s the first use of the UK’s so-called “Plain Vanilla Listed Bonds” conversion under a new framework introduced at the start of this year. That’s designed to broaden access to the UK corporate bond market by enabling smaller denominations and simpler structures.
LSEG’s move should allow a wider range of investors to access eligible corporate bonds admitted for trading on the London Stock Exchange, supporting deeper liquidity and a more inclusive UK capital market, according to a statement from Lloyds Banking Group plc, which acted as sole solicitation agent.
“Established issuers can help set the direction for a more accessible and resilient market,” John Langley, chief executive for corporate and institutional banking at Lloyds, is cited as saying in the statement.
The UK’s new framework comes as the government is trying to encourage retail investment in riskier assets, having cut the amount of cash Britons will be able to save in tax-free ISAs each year. It’s also looking at increasing retail participation in the government bills market.
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