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Anglian water bond 6.25%??

qwert10
Posts: 188 Forumite

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
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
0
Comments
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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.
1 -
Launched in 1998. Not a new issue. Will be trading well above nominal par value.1
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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.2
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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
2 -
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 termHowever 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?
2 -
A link to the offer circular.
https://www.londonstockexchange.com/prices-and-markets/retail-bonds/documents/anglianwater-6875-xs0089553282-oc.pdf
1 -
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!!2
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This is a common scam. I have seen it before. It does the rounds every now and then. I have seen it with Anglian Water but also other companies
1 - Financial advisers do not cold call and promote unregulated investments. This is a scammer calling you.
2 - The bond data they use in the scam is based on a real bond but its not a new issue (although they usually make out that it is. Frequently they pick bonds that are nearing their redemption date as it helps fool people).
3 - Whilst the real bond is a corporate bond, it is not a fixed term deposit. It is a 100% capital at risk investment. it is not a retail investment and should not be marketed. e.g. I am a real financial adviser and I would be in breach of regulation if I was to cold call you and offer this as the real bond.
4 - However, whilst the real bond mentioned in 3 exists, any money you pay will not go to that bond. It goes into the scammers bank account and the money removed long before you realise you have been scammed.
This is a very common scam. No "probably" about it.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.8 -
qwert10 said:Hi had a financial advisor call me
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