Brokers Shore Capital consider that the bond refinancing International Personal Finance (LON:IPF) recently announced will increase funding costs, but it will be a price worth paying.a bond if that refinancing is successful.
SC analyst Gary Greenwood has retained his ‘hold’ recommendation on the stock as it prepares to refinance its eurobonds. He says that it will boost the group’s funding position but also ‘likely result in a material increase in total finance costs’.
"However, we view this as a price worth paying to underpin the future of the group. Despite significant risk-adjusted upside and increasing confidence around the eurobond refinancing being successful, we remain reluctant to reconsider our neutral stance until the refinancing has actually completed."