Marex Group’s planned redomiciliation to Bermuda is already showing its value in terms of investor confidence, according to the company’s chief executive officer.

The London-based financial services platform with a focus on commodities said today it has completed an oversubscribed offering of $500 million perpetual subordinated resettable fixed rate notes.

Marex intends to use the net proceeds for general corporate purposes including the funding of the purchase of any or all of Marex’s outstanding $100 million, 13.25 per cent fixed-rate reset perpetual subordinated contingent convertible notes, pursuant to the tender offer announced by Marex June 1, and also the funding of acquisitions.

Marex said last week it had acquired Monaco-headquartered Levmet, expanding its physical market making operations and adding capabilities in European power and gas trading.

Ian Lowitt, CEO of Marex, said: “We are pleased to have successfully issued $500 million of hybrid perpetual securities, which are expected to carry 100 per cent equity credit from S&P post completion of our Bermuda redomiciliation.

“We achieved significantly lower pricing at 7.7 per cent, compared to our previous AT1 issuance at 13.25 per cent, which demonstrates the meaningful progress we have made over the past four years and the strength of our investment proposition.

“Our proposed Bermuda domicile enabled us to structure the security in a way that is attractive to investors, which led to strong oversubscription and underscores a further benefit of our redomiciliation.

“The breadth of participation, from both longstanding and new investors, is a further reflection of confidence in the continued growth of our business.”

Shareholders last month gave Marex the green light for its Bermuda move, approving all resolutions on the agenda of a general meeting by a ratio of nearly nine to one.

Marex, which is listed on New York’s Nasdaq Stock Market, plans to reorganise into four regional subgroups under a new Bermuda parent.

Barclays Bank, Goldman Sachs International and Jefferies International are acting as joint bookrunners for the offering.