FRCL : Foreign & Colonial to redeem its debenture
Foreign & Colonial has £110m of debenture stock outstanding that was issued in 1989 and falls due for repayment on 31 December 2014. The Board have announced today that this will be redeemed at par on 31 December. This is good news for ordinary shareholders as Foreign & Colonial have been paying £11.25% interest on this debt each year – that’s £309.75m of interest over the whole 25 years when market rates of interest have been way below this, especially in recent years.