Financial adviser and discretionary fund manager AFH Financial Group has launched a bond issue to raise £752,000 to fund future acquisition deals.
The firm announced today it had launched the unsecured bonds, which will pay 8 per cent and be traded on the Icap Securities and Derivatives Exchange. ISDX is a London-based stock exchange that allows small and medium sized firms, which tend to carry a greater investment risk than more established or larger firms, to raise finance. The bonds will mature in 2020.
In a statement on the ISDX, the company says: “The proceeds of the bond issue, together with the proceeds from the issue of ordinary shares announced in August, will be used to provide additional working capital for the company and to finance potential future acquisitions.”
AFH announced last month it had raised £2.8m from investors via a share issue of 1.9m shares priced at £1.09 per share.
The company, which has acquired a series of advice firms in the last 12 months, reported a 44 per cent rise in pre-tax profits for the six months to 30 April 2013, from £193,397 to £279,160.