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Alternative Options to a London Listing for Issuers of Debt Securities

AUTHORs: Margot Carty Services: Brexit, International Listing Services DATE: 20/02/2019

With Brexit only a few weeks away and exit negotiations still ongoing between the EU and UK, debt issuers listed in London are considering their options in terms of their listing venue and the alternatives to a London listing post 29 March 2019.  In this article we discuss the main reasons for listing and three alternative listing venues, Euronext Dublin (ENX), the Vienna Stock Exchange (VSX) and the Cayman Islands Stock Exchange (CSX).

Reasons for Listing

The main reasons for listing include:

  • Passport to Europe – issuers approved under the Prospectus Directive (PD) in Ireland can offer their securities to the public in certain other EEA states.  In addition, the approved prospectus can be used for an admission to listing on other EEA regulated markets.
  • Tax advantages – one reason for debt issuers seeking a listing is to avail of the quoted Eurobond exemption from interest withholding tax.  The UK HMRC recognises each of ENX (regulated and global exchange market), the VSX (Third Market) and the CSX as recognised stock exchanges.
  • ECB eligibility – in order to be eligible as collateral for Eurosystem credit operations, marketable assets must comply with certain eligibility criteria, including for debt instruments, that they be admitted to trading on an EU regulated or acceptable non-regulated market.  In order for an issuer’s debt instrument to be used as collateral by counterparties within the Eurosystem, a listing on ENX (regulated or global exchange market) or the VSX would suffice.
  • Transparency – a listing requires issuers to comply with specific ongoing listing requirements which includes the timely publication of certain material information relating to the issuer and its securities.
  • Marketing – a listing on any of ENX, the VSX or CSX facilitates the sale and distribution of securities to investors that may be prohibited from investing in unlisted securities.

Alternative Markets to London – Ireland / Vienna / Cayman Islands

For those issuers seeking a listing on an alternative regulated market in the EU, the regulated market of ENX provides a perfect solution.There are experienced teams in both the Central Bank of Ireland (CBI) and ENX (both use competitive turnaround times for review) meaning that an issuer could be approved and admitted to listing within a short number of weeks.

Where a debt issuer does not require a regulated market listing but still requires a listing on a ‘recognised stock exchange’, the global exchange market of ENX, the Third Market of the VSX or the CSX are excellent alternative listing venues.Documentation requirements vary depending on the listing venue chosen and our Listings team are happy to assist with market selection.

Matheson Listing Services

The Listings team at Matheson are a highly experienced team providing debt listing services for listings on each of ENX, the VSX and the CSX. Our team will provide guidance on all stages of the listing process from initial review to final listing and will advise issuers of their ongoing listing requirements once listed.

Matheson is a registered Listing Agent of ENX and the VSX and is a recognised Prospectus Advisor by the CBI.