Ei group 47VU maturity soon

I wonder if some of the more experienced members of the forum can provide some info.

I purchased these when they were on a reasonable discount to par and, being the first bonds I had purchased, crossed my fingers and hoped for maturity at par and a good yield in the meantime.
My question is - what is the normal procedure at maturity? Do they just pay your broker and cancel or do they offer a replacement bond with some kind of inducement. I recall that Ei had a redemption offer about 2 years ago but I cannot remember the terms. And how soon before the maturity date do they announce?

Maturity date is approx a month away

Thoughts gentlemen?

Comments

  • I hesitated to answer (I don't consider myself "experienced") hower, I think you can look forward to the cash appearing in your broker account on or very soon after the due date and the bonds will disappear as a holding in your account.

    I can't remember ever being offered replacement bonds on maturity especially with any kind of inducement. EI will be glad to have got rid of this pretty expensive debt.
  • My experiences are the same as Laughton's. However, I would also add that the accrued interest for the final period, normally turns up a couple of days after the principle is paid, for some reason.
  • Maturity sum and interest received by iDealing so all good.
    Question now is where to reinvest and get 6% plus with security?

    RGL equity at over 7% and 15% below NAV?
    ENQ1 at substantially below par?
    PMO1 now a much better bet than a year ago? And just below par

    Any other thoughts

    Steve
  • Others , but not completely classed as Fixed Interest,
    BSIF
    JLEN
    IPF1
    1SBB
    Most Pref shares are now at 6.5%, but capital values may continue to decline!
    PRINCIPALITY BS 7%-FR SUB PERP GBP1000'REGS (SEDOL:B010CN5) - but Call / Reset Jun 2020
    There may be further opportunities due to the BREXIT saga overhanging the markets, therefore retaining some cash would be a good idea

  • Thanks Shaun

    I have JLEN thanks to their recent placing. May add to it.
    Had IPF1 since issue. Got enough.
    BSIF have a large premium to NAV which puts me off (being a tightwad)
    Avoiding prefs because of same reasons as you state

    I'll have a look at 1sbb though
    Think I'll Wait til later in week and see what Brexit brings

    Thanks for the ideas

    Steve
  • This EI bond was my first foray into corporate bonds many many years ago, I stuck with it through thick and very thin, kind of sad to see it go. Where to now? Any yields worth having in the corp bond sector are relatively high for very good reason. Cash yields around 1.25% (Marcus, etc.), Many big stocks yielding 7 or 8% but with greater capital risk than bonds. BREXIT overhanging everything. Patience is sometimes the hardest option,
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