Appian completes €5m bond issue

Appian Wealth Management, a Dublin-based asset management firm formed following a management buyout at Aberdeen Asset Management Ireland, completed a €5 million bond placement yesterday.

The firm, which was formally established in March, said the placing of a 15-year bond with clients had been oversubscribed and it would consider making an additional bond issue this year.

The initial €5 million bond is backed by the French bank Dexia and is structured so that bond holders are guaranteed a return above the rate of inflation for the full 15-year period of the scheme.

For the first three years, bond holders will get a guaranteed return of 5 per cent, and for the next 12 years they will get a 2 per cent return above the inflation rate in each particular year.

Mr Patrick Lawless, managing director of Appian, said he was delighted with the response to the firm's first bond placement which was driven by customer's desire for safe investments.

"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."

The bond carries a AAA rating from the two major international ratings agencies, Moody's and Standard & Poor's.

Mr Lawless, who was previously head of private clients at Aberdeen Asset Management and ABN Amro in Dublin, said the company would consider issuing another bond over a short time frame than the 15 years.

He said the clients which took up Appian's first bond issue included high net worth individuals with more than €200,000 to invest, pension funds, charities and credit unions. He said Appian would continue to target conservative investment products because he felt there was still bad economic news to come.

Appian was formed earlier this year when management and staff took part in a management buyout at Aberdeen Asset Management earlier this year. It is believed the firm has more than $100 million under management.

Appian's board includes a number of high profile Irish business figures. Appian's non-executive chairman is Mr Donal Roche, managing director of Matheson Ormsby Prentice Solicitors.

The firm provides discretionary and non-discretionary fund management for a variety of clients. It markets itself as an asset management firm with a conservative investment style.