A common complaint about the London Stock Exchange's ORB retail bond market is a lack of opportunities for diversification, with bonds issued mainly by financial services companies and those carrying higher levels of risk such as property developers. The addition, therefore, of a new bond issued by the iconic transport and infrastructure company Stobart (STOB) will do much to broaden the range of bonds retail investors can buy or, as one fund manager put it: "At last a company that actually does something". At the time of writing, Stobart had yet finalise the terms of its issue but market sources indicated that the company is looking to raise slightly more than £25m with a coupon expected to be around 5.5 per cent.
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