Good value in Royal Mail with its €500million bond issue
Royal Mail (RMG) has just reported that it has launched its first commercial bond issue for Euros 500 million. Is that a good thing? Certainly, since part of logic of the business being floated was to get it out of the National Accounts and most particularly, out of the clutches of Her Majesty’s Treasury and its cost cutting acolytes. The fact that the Treasury has failed to meet earlier targets as promised, to get the Nations’ finances in sufficiently good order to win an election, the cutting goes on. There is little doubt that the Royal Mail would have had a hard time of it competing with the NHS and education for funds. So at least it can now raise cash for the kind of investment needed to build future revenue, profit and earnings flows.
