Investors who have been craving for income through market investments have been offered a newly introduced retail bond, which will pay around five percent interest to the investors. Nevertheless, the bonds will come with a term of eight years and the investors who will be in need of their money back before the term ends will have to bear losses if the market prices go down at that time.
The company which is involved in selling these bonds, and to which the investors would be lending their wealth, is a known lender - Intermediate Capital Group which is a listed company.
According to the regulation of the scheme, minimum investment should be around £2,000. The interest on which will be paid two times in a year. The above offer will be closing on March 18 and respectively the first interest receivable by investors is scheduled around 24th September. ICG had issued these bonds previously in 2011 and again in 2012, which raised a sum of £115 millions. The investors received an interest of 6.25percent on their investment.
Rectory Homes has issued another type of bond recently. This type of bond will be paying around 6.25 percent and the term will be of five years. However, these bonds are known as mini-bonds, which will not be available to trade on open market.