Excess liquidity in the local financial market
The extraordinary demand for the recent Medserv plc bond issue – amounting to over €55 million across more than 3,800 applicants during the public offering – is once again indicative of the excess liquidity within the local financial market.
Unfortunately, the first tranche of the debt issuance programme by Medserv plc was limited to €13 million leaving all applicants very disappointed with the number of bonds allotted to them and the resultant refunds.
Although the amount raised by Medserv was well above anyone’s expectations and possibly among the highest ever recorded for a new local corporate bond issue, in hindsight, the strong demand for a local debt instrument is not surprising given that this was the first offering of a non-bank issue for a number of years.