For companies looking to raise capital through the issuance of debt securities, one important option is the ICSD (International Central Securities Depositories) agreement programme. This programme allows issuers to list their debt securities on the ICSDs, which are international clearing houses for the settlement of securities trades.
The ICSDs provide a number of benefits for issuers, including access to a large and diverse investor base, streamlined settlement processes, and enhanced liquidity. By listing their securities on the ICSDs, issuers can reach investors in multiple jurisdictions, including Europe, Asia, and the Americas. This can help to diversify their funding sources and reduce their reliance on local markets.
To participate in the ICSD agreement programme, issuers must meet certain requirements and follow a specific process. They must first obtain a Global Legal Entity Identifier (LEI) and register with the ICSDs. They must also comply with various legal and regulatory requirements, including providing adequate disclosure and complying with anti-money laundering and anti-terrorism financing regulations.
Once an issuer has met these requirements, they can proceed with the issuance of their debt securities. The ICSDs provide a range of services to help issuers manage the settlement process and ensure timely payment of interest and principal. These services include automated processing, flexible settlement options, and comprehensive reporting.
Overall, the ICSD agreement programme offers issuers a cost-effective and efficient way to access global capital markets. By listing their debt securities on the ICSDs, issuers can tap into a broad investor base, increase liquidity, and streamline their settlement processes. As such, it is a valuable tool for companies looking to raise funds and expand their business on a global scale.
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