Admiral Markets Raises €1.8m from €5m Bond Issue

The company states that institutional investors require more time to participate in the offering.

The bond sale of Admiral Markets AS with which the company was looking to attract investors from the Baltic region has concluded. The result is the sale of 18,268 bonds of the total 50,000. Earlier in December, the firm announced that it was aiming to raise as much as €5 million from the sale.

At €100 per bond, the company raised a total of €1,826,800. According to the announcement, the securities will be transferred to investor accounts on the 28th of December 2017.

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Commenting on the bond issuance sale, board member Sergei Bogatenkov said: “We met our target in terms of retail investors and got positive feedback from several institutional investors, who still would have needed more time for deciding about the subscription. Especially when Admiral Markets and its field of financial services are unique in the Baltic market.”

The bonds of Admiral Markets AS are undergoing the procedure of listing on the Nasdaq Tallinn stock exchange. The firm is outlining that it expects the paper to begin trading in the first quarter of 2018.

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“We regard the bond issue as a positive experience in our journey to become a public and open company and encourage other companies who have been considering a bond issue or an IPO,” Bogatenkov said.

Regulatory Concerns

Bogatenkov shared in an official comment that investors were looking forward to the regulatory measures which ESMA is preparing for the retail trading industry.

Uncertainty about what those final measures will be, and the latest announcement from the pan-European regulator that the maximum leverage that retail brokers can offer might be cut to 1:30, are causing investors to take a breather.

“Admiral Markets has always considered carefully risks related to regulatory changes in our industry. We fully support the underlying thinking behind the proposals and will work towards improving standards within the regulatory framework,” Bogatenkov explains.

The interest rate on the bond is 8% per annum and interest payouts are scheduled to be distributed twice a year. The maturity date of the bonds is the 28th of December 2027, on which date, the issuer shall redeem all of the bonds.

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