A 5% yield from a solid issuer

Oliver Butt explains why a new retail bond from Burford Capital is an attractive opportunity.

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Burford Capital provides litigation funding
(Image credit: Credit: Jonathan Buckmaster / Alamy Stock Photo)

Last week, the latest consumer price index (CPI) figures showed that inflation had jumped to a four-year high of 2.7% in April. Ten-year gilt yields responded by contracting a few basis points, from around 1.14% to 1.07%.Yield investors obviously do not live in a time of plenty, which means the new retail bond from Burford Capital offers an attractive opportunity. A 5% coupon is not easy to come by, the bond will trade on the London Stock Exchange's order book for retail bonds in denominations of £100, and it should be reasonably liquid.

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IssuerBurford Capital PLC
GuarantorBurford Capital Limited
Nominal amount£175m
RatingUnrated
RepaymentBullet at par
Coupon5.0% semi-annual in arrears
Early redemptionGilts + 100 bps
Coupon dates1 June, 1 December
First settlement date01-Jun-17
Maturity date01-Dec-26
ISIN numberXS1614096425
DenominationsGBP100
ListingLondon Stock Exchange
Governing lawEnglish law
Lead managerPeel Hunt LLP