Listed bonds and private placements (larger companies)
Larger companies borrow from many investors at once by issuing bonds, either listed on a stock exchange or placed privately with institutions. It can raise large sums for years at a fixed or floating rate, but it needs a strong credit story and detailed documents.
- No security
How it works
A bond is a loan split into many pieces that investors buy. The company pays interest and repays the bonds at the end of the term.
Listed bonds. Bonds can be admitted to the London Stock Exchange's Main Market. Since 19 January 2026, the FCA's new Prospectus Rules have used one disclosure standard for all bonds and other debt securities, and removed the old minimum denomination thresholds. That makes it easier to offer bonds to ordinary investors, potentially in amounts from as little as £1.
- Access Bonds: the London Stock Exchange marks Main Market bonds that the issuer confirms are available to UK retail investors as Access Bonds. They replaced the old Order book for Retail Bonds (ORB).
- Plain Vanilla Listed Bonds: a subset with simple structures. They are fixed or floating rate, unsecured and unsubordinated, not convertible, and issued by a commercial company listed in the equity shares category, or a fully guaranteed subsidiary.
- You prepare a prospectus, apply for admission, and the bonds trade through brokers. A market maker can support trading.
Private placements. Bonds or notes can also be sold directly to a small number of institutional investors without listing. Private credit providers lend through bonds and notes as well as loans.
Upsides and downsides
Upsides
- Large sums for many years, without giving up shares
- Spreads borrowing across many investors instead of one bank
- Listed bonds can be traded, which investors value
Downsides
- Costly and complex to set up
- Needs a strong credit story and detailed disclosure
- Repaying the whole issue at the end
Risks
- Being unable to repay or refinance the bonds when they fall due
- Disclosure failures leading to claims from investors
What it costs
- How it is priced
- Interest (coupon) paid to bondholders, plus arranger, legal, listing and rating costs
- Costs that are easy to miss
- Arranger, legal and listing fees
- A credit rating, if investors want one
- Ongoing disclosure and reporting while the bonds are listed
Set by each issue. Bonds suit larger amounts raised from many investors at once.
Does it fit?
Could fit when
- You are a large, profitable company that needs to borrow a large sum for several years
- You are refinancing existing debt or funding an acquisition
Unlikely to fit when
- You are a small or mid-sized business (bond issues suit larger companies)
- You are loss-making
Who can use it
- Business types: Public limited company, Private limited company
- Usually needs a profitable business
- Listed bonds need a prospectus and admission to the market
- Private placements are made with institutional investors and usually need an established credit record
- Plain Vanilla Listed Bond status is only for companies listed in the equity shares (commercial companies) category or their fully guaranteed subsidiaries
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all public and quasi-public markets
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- Audited accounts
- Prospectus or offering document
- Credit story
Regulation and protections
Listed bonds follow the FCA's Prospectus Rules and the London Stock Exchange's rules. Private placements are private contracts with institutional investors.
The Public Offers and Admissions to Trading Regulations 2024 and the FCA's new Prospectus Rules took effect on 19 January 2026.
Types of provider: Investment banks and bond arrangers; London Stock Exchange; Institutional investors and private credit funds.
Also consider
Sources
- London Stock Exchange: Access Bonds · checked 7 October 2026
- FCA: PS25/9 New rules for the public offers and admissions to trading regime · checked 7 October 2026
- British Business Bank: What is private credit? · checked 7 October 2026