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Anglian water bond 6.25%??

Hi had  a financial advisor call me to discuss an Anglian Water bond over 3 years paying 6.6% . Has anyone on here heard of this wondering if it is genuine.

It sounds too good to be true?? The follwing is part of their document emailed to us:

OFFERING CIRCULAR
Anglian Water Plc
(Incorporated in England and Wales with limited liability under registered number 2366618)
£200,000,000
6.625 per cent. Guaranteed Bonds due 2023
unconditionally and irrevocably guaranteed by
ANGLIA N WATER SERVICES LIMITED
(Incorporated in England and Wales with limited liability under registered number 2366656)

Issue price: 98.825 per cent.

Application has been made to the London Stock Exchange Limited (the "London Stock Exchange")
for the £200,000,000 6.625 per cent. Guaranteed Bonds due 2023 of Anglian Water Plc (the "Bonds" and the
"Issuer" respectively) to be admitted to the Official List. Copies of this document, which comprises listing
particulars prepared in compliance with the listing rules made under section 142 of the Financial Services Act
1986 by the London Stock Exchange, have been delivered for registration to the Registrar of Companies in
England and Wales as required by section 149 of that Act.
Interest on the Bonds is payable annually in arrear on 21st August in each year at the rate

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Comments

  • Albermarle
    Albermarle Posts: 25,918 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    Hi had  a financial advisor call me to discuss an Anglian Water bond

    Anglian water do issue bonds . Do you know the financial advisor, or did you ask for the info ?

    If anybody cold calls you about a financial product then it is a bright red flag that it is not legit.

    Reputable financial institutions or advisors will only ever contact you about a financial product if you contact them first , or ask for info via a website for example. Even then they will be very cautious not to make any promises or talk about guarantees or similar.

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Launched in 1998. Not a new issue. Will be trading well above nominal par value. 
  • kuratowski
    kuratowski Posts: 1,415 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper Photogenic
    Could be you have been approached by a clone firm.  I.e. using the details of a genuine market instrument to trick you into handing over your money.
  • wmb194
    wmb194 Posts: 4,273 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Why would a utility need to borrow at 6.625% over such a short timeframe AND issue the bonds below par? This sounds like a scam. It looks like someone’s taken the details of an existing listed bond - LSE:40LV 6.875% 21/08/23 - and altered the details a little. This bond was issued in 2002, though, when rates were far higher and the indicative offer price shows it’s trading at about 20% above par.
    https://www.londonstockexchange.com/exchange/prices-and-markets/retail-bonds/company-summary/XS0089553282ZZGBPUKCP.html?lang=en
  • ColdIron
    ColdIron Posts: 9,638 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Water companies like Anglian do issue bonds although 6.625% for only 3 years does seem more than a little suspiciously short. This one has a 30 year term
    However there are many clone sites and salesmen that purport to represent legitimate companies while having no connection with them. The short term and the fact that someone called you would be ringing all of my alarm bells and has all he hallmarks of a scam. Have you had dealings with this 'financial advisor' before?


  • qwert10
    qwert10 Posts: 188 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    thanks all!  MSE always has great advice. clicked on a link on the internet which said 6.6%  then had a call.
    Probably a scam as you say!!
  • eskbanker
    eskbanker Posts: 35,223 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    qwert10 said:
    clicked on a link on the internet which said 6.6%  then had a call.
    Clicked on a link and then supplied your phone number for a call back?  Or do you have spyware or invasive products on your device that could render your contact details visible?
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