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From 2 September private investors will have their first-ever opportunity to subscribe to a bond directly through Boerse Stuttgart's SME segment, Bondm. This is a bond issued by the Hamburg company, KTG Agrar AG, a producer of agricultural products using both ecological and conventional farming methods and also a producer of renewable energy from biogas. Subscribing to the bond through Bondm will give investors a clear price advantage. They can purchase the bond at the issue price, which is not possible in the case of classical corporate bonds, and, as a rule, the issue price is significantly lower than the price at which the bond is first quoted on the stock exchange.
"Since the launch of Bondm, the segment has met with great interest among both investors and SMEs. Our new-issue calendar is chock-a-block after the summer break," says Sabine Traub, Head of Bond Trading at Boerse Stuttgart. "With the KTG bio-enterprise bond investors can benefit from the excellent prospects of the agricultural sector as demand for healthy food and clean energy is growing all the time. As a sound business which has been growing for more than 15 years, we will continue to invest in the production of biogas and in farmland, which is both a real asset and a scarce resource," said Siegfried Hofreiter, CEO of KTG Agrar AG on launching the issue of the bond.
The issue volume for the KTG bond amounts to EUR 25 million in total with a coupon of 6.75 percent and with the bond maturing on 14 September 2015. Investors can purchase the bond directly via Boerse Stuttgart from 2 until 14 September. Private investors can submit a subscription order in the form of a buy instruction for Boerse Stuttgart via their online bank or through their investment adviser at their house bank. After that the money will automatically be transferred and the securities automatically credited to the investor's securities account after allocation.
When the subscription period is over the KTG bond will be admitted to trading in the Bondm segment. It will be issued in denominations of EUR 1,000, a convenient denomination for private investors. Those who are interested can go to our website, www.boerse-stuttgart.de, where they will find detailed information on listed bonds and trading along with a video explaining exactly how to subscribe to the bond. Every week Boerse Stuttgart TV brings you all the latest news about bonds and new issues, which can also be found in our weekly newsletter, Bonds.
