FCM Workshop 8
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Why do issuers list bonds?
- - For tax reasons and
- - To prove to investors (especially institutional investors) that they meet the listing requirements
Are eurobonds listed in London subject to UK withholding tax?
No. They fall under the quoted bond exemption.
A similar exemption exists in Luxembourg
Is launching a listed or an unlisted eurobond cheaper?
Listed one is more expensive - even though investors may be more willing to buy it, there are listing fees and higher legal fees
Can private UK-incorporated companies list bond issues?
Can foreign-incorporated companies?
No (private UK companies cannot list bond issues) and Yes
To be listed what aggregate value must the securities generally have?
Can convertible shares be listed only if they convert into shares listed in London?
No. They can be listed if they are convertible into shares on any regulated market
Are there continuing obligations once a eurobond has been listed?
Yes. These are in the listing rules - disclosure, equality of treatment, notifying an RIS of any notice to bond holders etc
Who can be held responsible for information in the prospectus
The issuer and anyone who accepts responsibility for information in the prospectus
Are inaccuracies in the prospectus regarded as de minimus?
No. They may be contractual rights by way of warranty/misrepresentation. Also for negligent misstatement. There are criminal offences in FSMA and compensation may be payable.
What would you like to do?
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