SGS 7 - Listing a Eurobond

Question 1

Why list?

Answer 1

• Greater market
• Liquidity
• Confidence of market due to increased regulation
• To qualify for eurobond tax exemption
• Access to institutional investors

Question 2

What factors will affect the issuing of a bond?

Answer 2

• Seasoned issuer
• Listed bond?
• Local listing requirements
• Type of bond
• Credit rating of issuer

Question 3

What are the 3 steps in listing a bond?

Answer 3

• Prospectus approval
• Application for listing
• Application for admission to trading

Question 4

What are the stages in a bond issue?

Answer 4

Mandate letter
Due dilligence
Marketing with offer document
Launch (2 weeks after mandate letter)
Signing (2-3 weeks after launch)
Closing (1 week after signing - transfer of bonds)

Question 5

What liabilities may arise in relation to the offer document/prospectus

Answer 5

• s90 FSMA statutory compensation
• Negligent misstatement - Byrne v Heller
• Misrep
• Tort of deceit
• Breach of contract
• Criminal (FSA 2012)
• S19 theft act