Appian Wealth completes €5million Bond Placing

May 6th, 2003

Appian Wealth Management Ltd, a bespoke asset manager for private clients, has completed an innovative €5 million bond placement which provides a guaranteed return in excess of inflation for a full 15 years.

The €5 million bond was placed with Irish investors including private investors, pension funds and credit unions and, according to Appian Wealth Management Ltd Managing Director Patrick Lawless, the bond was oversubscribed. The bond carries a AAA rating from two major international ratings agencies, Moody’s and Standard & Poor’s.

Patrick Lawless said: “We are delighted with the response to this first bond placement from Appian Wealth Management Ltd and given the level of interest we are now considering a second bond placement which will provide a similar return to investors for a shorter time period.”

“Given the level of uncertainty over the direction of Irish inflation, we believe that there is a strong appetite among Irish investors for a bond which gives them a guaranteed return in excess of inflation over a lengthy period,” Mr Lawless added.

The initial €5 million bond is structured in the following fashion:
For years 1 to 3 inclusive, bond holders will get a guaranteed return of 5%
For years 4 to 15, bond holders will get a guaranteed return of 2% above the annual inflation rate in the particular year.

“This means that from year 4 onwards, no matter how high inflation goes holders of the bond will receive a return of 2 percentage points above inflation. If inflation reaches 6% in any one year, bondholders will receive an 8% interest payment. If inflation ever hits 10%, our bondholders will receive 12%. That guaranteed return explains why this initial bond has been received so enthusiastically by investors,” said Patrick Lawless.

Issued for Appian Wealth Management by MRPA Consultants, for further information contact:

Patrick J. Lawless, MD, Appian Asset Management
Brendan McGrath, MRPA Consultants. 01-6788099 or 087-9370266
Appeared in the Irish Times & Irish Independent on 6th May 2003.