Admiral Markets, an online FX and CFDs broker, is considering to raise €10 million around $11.2 million) in fresh capital, the company announced on Monday.
The broker is planning to issue subordinated bonds, but also highlighted that none of the decisions are finalized yet.
“At present, however, no final decision has been made to issue the bonds and the exact subscription conditions and [the] issue price of the bonds have not been determined,” the broker noted. “Further steps will be notified in accordance with the requirements of the stock exchange regulations.”
A proven technique to raise capital from the market
The European company issued similar public bonds in 2017, raising a total of €1.8 million (around $2.02 million). But the broker aimed to raise €5 million (almost $5.61 million), but could now achieve the target. These bonds are now listed on the Nasdaq Baltic Bond List by Nasdaq Tallinn and are paying an annual interest of 8 percent.
Why Flexibility Matters - What IS Prime, IS Risk Analytics Can Offer YouGo to article >>
Based in Estonia, Admiral Markets is licensed under the regulators in the United Kingdom, Cyprus, and Australia.
The broker is also expanding its global presence and added CFDs tracking Japanese stocks on its platforms.
Meanwhile, to tackle the heavy market competition, the company also expanded its zero-spread offerings on MetaTrader 5 platform.
Earlier this year, the parent company of the broker reported that it brought in total revenue of €33.5 million ($37.55 million) in 2019, with a net profit of €5.2 million ($5.83 million).
Admiral Markets’ business was highly impacted in April with the nosedive of West Texas Intermediate (WTI) crude price, which went to the negative region for the first time. Following that, the broker also instated an emergency plan by enabling only “close only” mode for prices below $5 and automatically closing all positions at sub-zero prices.