Electric bond launched by Pohjola
Finnish bank Pohjola is launching an index-linked bond investing in the Nordic electricity spot price, which will list on Nasdaq OMX Helsinki.
The 5-year bond – Pohjola Sähköobligaatio IV/2012 (Pohjola Electricity Bond IV/2012) – will be issued on 28 March with a nominal value of €40m, and targets retail investors.
Subscriptions begin on 13 February with two alternatives on offer – ‘Neutral’ and ‘Plus’ – with issue prices of 100% and 110%.
The index-linked yield is calculated by multiplying the return rate by the average annual yield.
The underlying asset is the realised average price of Nordic electricity (Nord Pool Spot Elspot system price) per calendar year. Five review periods are used.
Pohjola Bank is manager of the issue and the bond will be listed on NASDAQ OMX Helsinki, provided that the volume issued is meets minimum exchange requirements.