Issue of £30m Secured Bonds 2029

Merchants Trust PLC
15 December 1999



                 THE MERCHANTS TRUST PLC
         ISSUE OF £30,000,000 SECURED BONDS 2029


The  Directors  of The Merchants Trust PLC (the  'Trust')
announce  the issue of £30,000,000 of Secured Bonds  2029
(the  'Bonds').   The  issue  is  being  lead-managed  by
Warburg  Dillon Read.  Cazenove & Co is the sole  co-lead
manager.

The  Board, in consultation with the Managers,  has  been
reviewing  how the Trust could take advantage of  current
fixed  interest market conditions to enhance  shareholder
returns in the long term.  The issue of the Bonds  should
have  two beneficial effects.  First the Board considers,
that  on the basis of historical trends, the return  from
UK equities over the life of the Bonds is likely to be in
excess  of the interest cost of the Bonds.  Secondly  the
issue will reduce the Trust's average cost of borrowing.

The  Bonds will be secured by a floating charge over  the
whole  of  the Trust's property and undertaking and  will
rank  pari  passu in point of security with the  Fintrust
Debenture  PLC loan and The First Debenture  Finance  PLC
loan.

The Bonds will carry semi-annual coupons to be payable on
20  June and 20 December and be issued at such price (the
'Issue  Price') and coupon to be determined at or  before
12  noon today.  The gross redemption yield at the  Issue
Price  will  represent a margin of 175 basis points  over
the  yield  on the 6 per cent Treasury Stock  2028.   The
first  payment of interest will be on 20 June 2000.   The
Issue  Price for the Bonds will be payable in full on  20
December  1999.   The  Bonds will be  available  in  both
bearer and registered form.

Whilst  it  is intended that the proceeds will ultimately
be  invested in UK equities, the initial intention is  to
invest the funds in short term gilt edged securities.

Application  has been made to the London  Stock  Exchange
for the Bonds to be admitted to the Official List.  It is
expected  that  official  dealings  in  the  Bonds   will
commence at 8.30am on 21 December 1999.

Save  for  the  announcement of the Issue Price  and  the
coupon,  it  is anticipated that no further  announcement
will be made concerning the distribution of the Bonds.

For further information please contact:

Simon White/Nigel Lanning
-  Dresdner RCM Global Investors                020 7475 2700
     
Frank Kennedy
-  Warburg  Dillon  Read                        020 7567 4458
     
Duncan Hunter
-  Cazenove  &  Co.                             020 7588 2828