At a recent Prospectus Regulations Stakeholder meeting hosted by the Central Bank and the Irish Stock Exchange ("ISE"), the ISE reported on the latest developments in relation to debt listings on the ISE.
The ISE continues to be the leading location in Europe for debt listing, and has attracted 3,700 issuers from 80 countries. There are more than 24,000 debt securities currently listed on one or other of the two markets, for listing debt securities, operated by the ISE.
The types of debt securities listed on the ISE include CLOs, Covered Bonds, Derivative Securities, EMTN Programmes, High Yield Bonds, Islamic Certificates, Loan Participation Notes, Medium Term Notes and Global Depository Notes.
The entities issuing ISE listed debt come from an ever expanding list of jurisdictions. Recently, issuers from the Republic of Azerbaijan, Bahrain, Egypt, Gabon, Rwanda, Nigeria, Armenia and Ghana joined those who have already listed.
The ISE has confirmed that it is committed to tailoring its listing regimes to expand the range of debt products listed on its markets.
There are many reasons for obtaining a listing for specialist debt securities on the ISE including:
- Withholding tax – A listing on the Global Exchange Market or Main Securities Market of the ISE can facilitate that interest be paid without any withholding tax by relying on the "quoted Eurobond" exemption. A "quoted Eurobond" is defined in the tax legislation as a security which is quoted on a recognised stock exchange and carries a right to interest.
- Distribution – Increased distribution lines to institutional investors which are required to hold a significant proportion of their investments in listed securities.
- Liquidity – Listing can increase the liquidity of an issue.
- Status – Increased status and credibility of the securities on a recognised EU/OECD exchange.
Advantages of Listing on the ISE
- Flexibility and Approachability – The ISE will accommodate no names basis queries. Experienced ISE staff are accessible to arrangers, where necessary, for direct discussion. Omission requests will be considered where appropriate.
- Experience and Consistency – The ISE has an experienced team of listing executives with a reputation for consistency of approach and tailored product rules.
- Cost – Low cost, transparent flat pricing structure rather than capitalisation based.
- Timing – Committed turnaround times of 3 days from initial submission, 2 days from subsequent drafts.
Choices of Markets for Listing
The ISE operates two markets for listing debt securities:
- Main Securities Market ("MSM") – The MSM is an EU Regulated Market as defined under the Markets in Financial Instruments (Directive 2004/39/EC) ("MiFID"). It is the preeminent market for the listing of structured bonds, representing approximately 80% of asset backed security issues seeking a listing in Europe.
- Global Exchange Market ("GEM") – The GEM is an exchange-regulated market and Multilateral Trading Facility ("MTF") as defined under MiFID, operated under the supervision of the ISE. As an exchange regulated market it provides more flexibility than an EU Regulated Market such as the MSM. GEM is aimed at professional investors.
Debt Listing Team at Dillon Eustace
Our listing team is experienced in advising on all types of debt structures and provides a highly efficient and streamlined listing process, working closely, where appropriate, with the firm's Securitisation and Structured Finance team.
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.