The Channel Islands Stock Exchange (CISX)
provides a fast-track listing procedure for debt and equity
securities and currently has over 2,500 listings of all types of
securities. One of the key drivers for this growth has been the
ability of the CISX to list Eurobonds which qualify for exemption
from the requirement to pay UK withholding tax.
Conditions for Eurobond exemption
If interest arising in the UK is to be paid to a person who is
resident outside the UK, the person paying the interest (or its
paying agent) must deduct UK withholding tax. However, an exemption
from this requirement is available where interest is payable on a
quoted Eurobond. A quoted Eurobond is a security that (a) carries a
right to interest; (b) is issued by a corporate; and (c) is listed
on a 'recognised stock exchange'.
Following CISX's designation as a recognised stock exchange
by HMRC in 2002, the CISX has as a result of its inexpensive and
fast-track listing procedures become a popular exchange for
The UK Finance Act 2007 was intended to clarify the meaning of
the expression 'securities listed on a recognised stock
exchange', as used in UK tax legislation. The statute provided
that securities will qualify for the Eurobond exemption if they
are: (a) admitted to trading on a recognised exchange; and (b)
officially listed in a qualifying country outside the United
Kingdom. Within the context of the CISX listing rules, being
admitted to the official list automatically means that the listed
securities are also admitted to trading. The apparent dual test of
being listed and trading, as set out in the Finance Act 2007 will,
accordingly, be satisfied upon a CISX listing. By way of
confirmation, HMRC has stated that the changes set out in the
Finance Act 2007 were not intended to alter the position of stock
exchanges which had already been designated as 'recognised'
The CISX continues to be one of the key exchanges for listing
quoted Eurobonds, particularly for companies seeking cost-effective
corporate finance solutions.
Ogier Corporate Finance Limited (OCFL) is a
full listing member of the CISX and specialises in providing high
quality and cost effective professional services in relation to
listing quoted Eurobonds. Ogier is experienced in all aspects of
structuring and documenting debt issuance transactions, from
initial design to public offerings. OCFL acts as a sponsor for all
types of listings, including Eurobonds and as at 30 September 2008,
was the leading sponsor on the CISX by numbers of securities
OCFL is part of the Ogier group. Ogier is one of the world's
leading providers of offshore legal and fiduciary services
employing over 750 professional and support staff. The group has a
presence in nine jurisdictions around the world, namely the British
Virgin Islands, the Cayman Islands, Guernsey, Hong Kong, Ireland,
Jersey, London, Montevideo and New Zealand.
As well as being able to sponsor listings on the CISX via OCFL,
Ogier provides advice on all aspects of BVI, Cayman, Guernsey and
Jersey law and associated fiduciary services through a global
network of offices that cover all time zones and key financial
markets including the rapidly growing Middle Eastern, Asian and
Ogier continues to be recognised as a leading law firm by the
leading legal directories, including Legal 500 and Chambers.
In Legal 500 Ogier has more lawyers recommended and more tier 1
rankings for individual practice areas than any other Jersey
In Chambers the firm has more lawyers recommended than any
other Jersey firm.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
My new year's resolutions never have anything to do with the gym or eating better. It's always focused on the same thing: ensure I get my RRSP contributions in on time.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).