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Tax advisors, ETL | Freund & Partner GmbH Steuerberatungsgesellschaft, is to issue a hybrid bond via the Stuttgart Stock Exchange. This bond issue, which has a total volume of up to EUR 25 million, matures in seven years and has an interest coupon of 7.5 percent. It is denominated in units of EUR 1,000. From 22 November private investors can either buy the bond through their house or online bank by sending a buy order to Boerse Stuttgart or acquire it directly through the issuer.
The offering from ETL | Freund & Partner GmbH Steuerberatungsgesellschaft is a subordinate bond with an equity element, which is why it will not be listed in the Bondm segment. For in addition to the annual coupon, the hybrid bond offers an earnings-related increase in book value of up to 0.5 percent per annum, the amount in question being paid out when the bond matures. If the company should post a loss in any financial year, this will also affect the return for bondholders. Depending on the type of loss and its magnitude, the book value of the bond can fall by 0.25 percent or more in the year in question.
The scheduled subscription period runs from 22 to 30 November 2010. At the end of the subscription period the bond will be admitted to Boerse Stuttgart's Open market trading.
