| Policy note on high yield transactions is driving growth on the ISE |
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By: Helen Berrill, Helen Berrill
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| Since the Irish Stock Exchange (ISE) published its policy note on high yield transactions, it has become a popular exchange for listing these types of transactions, writes Helen Berrill, who adds that the exchange's track record, together with its approachable attitude to developments in the market, will continue to place it as one of the leading stock exchanges for listing debt securities. |
Listings on the Irish Stock Exchange (ISE) originate from various jurisdictions. To date, in addition to European issuers, Arthur Cox has worked with issuers from Jersey, the Cayman Islands and Delaware to name but a few. We have also acted as listing agent for issuers from other jurisdictions, such as:
• Greece - Fage Dairy Industry SA, a leading dairy company in Greece and the second largest Greek food company based on 2003 net sales, listed its €130 million 7.5 per cent senior notes due 2015.
• Japan - JLOC 36, a Japanese entity which listed its notes on the ISE.
• Mexico - Su Casita Trust, a Mexican trust, also listed its notes on the ISE.
• Panama - AES El Salvador Trust, a Panamian trust, issued $300 million 6.75 per cent senior guaranteed notes due 2016 which were guaranteed by AES Corporation, a leading power company in 27 countries.
• Ukraine - The Cabinet Ministers of Ukraine have listed its bonds on the ISE.
Together with the transactions mentioned above, other notable issuers, for whom we have acted as listing agent include: Walmart Stores Inc, Royal Caribbean Cruises Limited, Rockwood Specialties, Central European Distribution Corporation, Manpower and Kelloggs Company.
Since the ISE published its policy note on high yield transactions, the ISE has become a popular Exchange for listing these types of transactions. Under the Prospectus Directive, where high yield issuers issue through a company within its group structure and its debt is guaranteed on a joint and several basis by a number, or all, of the subsidiaries of the main operating company, they are required to present separate financial statements for each subsidiary acting as guarantor. The ISE took a very proactive approach to this requirement and produced a policy note enabling issuers to avail of its consolidated financials.
The ISE is also a very popular location for listing CMBS transactions. Arthur Cox has listed numerous such deals including the Epic transactions for Royal Bank of Scotland, the Talisman transactions for ABN AMRO, the Taurus transactions for Merrill Lynch and also the Windermere transactions for Lehman Brothers.
The ISE is also the exchange of choice for listing Russian transactions. Ireland is a favoured location for establishing SPV's for Russian LPN deals. If a Russian issuer issues notes directly to the market, Russian withholding tax will apply but if an Irish SPV is used, the Russian issuer can take advantage of the Irish/ Russian double tax treaty. Arthur Cox has acted as legal advisor on substantially all of these transactions and Arthur Cox Listings has also acted as listing agent on these transactions. LPNs that have recently listed include major banks such as Gazprombank, MDM Bank, Nomos Capital and TransCreditBank. Arthur Cox has also acted as advisor and listing agent on the ECP programme for Russian Standard Capital Bank.
A number of US life insurance companies have been attracted to the Irish Stock Exchange. New York Life, Metropolitan Life, Jackson National Life, Nationwide Life Insurance Company, Genworth Life Insurance Company and Hartford Life Insurance Company all listed its funding programmes through Arthur Cox Listings in 2006.
The ISE's proven track record together with its approachable attitude to developments in the market will continue to place it as one of the leading stock exchanges for listing debt securities. We look forward to another busy and successful year listing varied and innovative debt products on the ISE. |
Helen Berrill is director of listings for Arthur Cox Listing Services Limited.
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