Jun 06 - Gibraltar Stock Exchange Approves First Bond Programmes Of Up To €504 Billion Of ETIs And ETDs
The Gibraltar Stock Exchange (GSX) has announced that it has approved its first bond programmes for issuance of up to €252 billion of Exchange-Traded Instruments (ETIs) issued by iStrcuture PCC plc and up to €252 billion of Exchange Traded Debt (ETD) issued by iFinance PCC plc.
GSX’s Member Firm, Argentarius ETI Management, was responsible for bringing the iStructure Programme (ETIs) and iFinance Programme (ETD) to market.
Main Benefits
A base prospectus allows the issuer to be much faster to market, saving on costs as well as time, while also providing flexibility in the capital raising process.
ETIs are securities which pass through the performance of underlying assets. The repayment value of these securities is linked to the value of the collateral, with harmonised subscription and redemption terms. Any asset is eligible for securitisation.
ETIs do not need a depository in the EU, have full passporting rights throughout the EU and Switzerland, and are suitable for offering to professional investors and UCITS. Directors may promote to suitable investors. ETIs listed on GSX can be purchased through broker relationships which makes sales and settlement simple; ETI’s allow for flexible branding and IR disclosure.
ETIs: Answering the need of asset managers
Argentarius CEO and Director of iStructure and iFinance Andreas Wolfl comments:
“With the approved base prospectus we are able to issue Exchange Traded Instruments linked to Alternative Investments within a very attractive time-to-market environment and cost structure. ETIs, as an access route for asset managers into the EU, becomes even more attractive now”.
“We already have more than 20 clients in the pipeline to issue ETIs or ETDs under our issuance programme. The passporting into the whole EU makes Argentarius Exchange Traded Instruments and Debts even more interesting for asset managers and SMEs”, adds Edit Czigler, Deputy CEO of Argentarius and Director of iStructure and iFinance.
ETDs: A solution for SMEs, Real Estate Developers and Leveraged Finance Companies
ETDs are debt securities issued by a Financial Vehicle Corporation (FVC) under European Central Bank regulations, delivering the coupon and repayment of an underlying bond or basket of bonds. ETDs are backed by and linked to bonds or mezzanine instruments issued by companies searching for marketplace lending opportunities.
Small and Medium Sized Enterprises (SMEs), leveraged finance companies, and commercial real estate developers may prefer to use ETDs to access bank-independent finance sources as an alternative to issuing bonds. If an SME securitises their debt and issues Exchange Traded Debt (ETDs) for listing on GSX, with an approved prospectus, these securities offer full passporting and promotional rights throughout the EU and are eligible for UCITS investment.
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