Stobart axes bond issue

WARRINGTON logistics group Stobart has shelved plans to raise £25m from private investors through the London Stock Exchange’s retail bond market.

It announced the bond issue two weeks ago but yesterday said it would not proceed in the light of entry to the market of larger bond issuers at higher coupon pricing.

Stobart was offering 5.5%, with a minimum investment of £2,000.

Chief financial officer, Ben Whawell, said: “We will keep under review the possibility of issuing a retail bond in the future, as we see it as a potential attractive funding option, but only when we feel the cost of the bond to the Company, its attractiveness to investors and its liquidity characteristics are in the right alignment.”

The group had planned to use the cash to develop its airport in Carlise and a renewable energy plant in Widnes.