Big Bon bond allotment policy

Big Bon Finance plc yesterday announced the allotment policy for its bond issue, which closed last week almost immediately after opening.

The bonds are secured and carry an interest rate of seven per cent. HSBC Bank plc, the manager and underwriter of the issue, said that 1,352 applications were received, representing a total of Lm4.6 million.

The bond issue is for Lm2.5 million, with an over-allotment option of Lm500,000.

Applications made at the pre-placement stage, by professional investors and institutions, will be allotted in full, to the pre-placement total of Lm1.5 million.

The remainder of the applications will be allotted in full if they are of a nominal value of Lm1,000 or less. Those for Lm1,001 to Lm10,000 will receive Lm1,000 and 20 per cent of the rest.

Those for Lm10,001 to Lm20,000 will receive Lm2,000 and 15 per cent of the rest.

Those for Lm20,001 to Lm50,000 will receive Lm5,000 and 12 per cent of the rest, and those for Lm50,001 or more will receive Lm6,600 and nine per cent of the rest.

All sums will be rounded off to the nearest Lm100. Refunds will be issued by mailed cheque and Big Bon Finance plc will inform all applicants of the number of bonds allotted to them.

Interest on the bonds will start being calculated as from today.