McLean says more companies will issue bonds direct to retail investors

Colin McLean expects to see more companies issuing bonds directly to retail investors.

This follows the recent issuing of up to £75m of bonds by Provident Financial. McLean, managing director of SVM Asset Management, says in so doing companies can cut interest payments and retire more expensive debt. He expects bank credit to remain tight in 2010, despite the Budget announcement that at least half of the £94bn in fresh loans from Royal Bank of Scotland and Lloyds Banking Group will go to small and medium enterprises. Provident will pay 7% on its 10-year retail bonds. The bonds’ offerer, Hargreaves Lansdown, receives a 0.5% fee. McLean says: “That gives Provident, ...