Year: 2013

November 11, 2013 5:46 pm

The Cyprus Stock Exchange offers Issuers from any jurisdiction the opportunity to seek a fast-track dual listing on the London Stock Exchange, Frankfurt Stock Exchange and other EU stock exchanges provided the listing is done on the Main Market of the CSE.

Despite all the problems encountered by Cyprus’ banking sector and the negative publicity generated after the island was rescued by the EC/ECB and the IMF, Cyprus continues to remain an attractive jurisdiction in the eurozone, offering flexible structures and a very pro-business culture ready to accommodate entrepreneurs from around the globe.

The Cyprus Stock Exchange (CSE) operates three regulated market segments of Main, Parallel and Alternative as well as a market segment for Bonds in addition to the MTF Market, which is locally referred to as the Emerging Companies Market (www.cse.com.cy).

The main difference between the various market segments is the minimum capitalization rule, the number of years for which audited accounts should be presented, the minimum public float and degree of implementation of the corporate governance code.

Prospectus

In order to apply to list on the regulated market segments of the Cyprus Stock Exchange (CSE), an Issuer or the applying company first needs to submit its prospectus for the listing to the Cyprus Securities & Exchange Commission (CySEC), after which the Issuer then applies to list on the CSE. The examination and approval of the Prospectus may well take 3 months, while the listing process takes about a month to complete.

Under the EU single-passporting rules, a prospectus approved by CySEC is eligible to be used and circulated in other EU member states subject to minor formalities, which essentially means that an Issuer whose prospectus has been approved by CySEC and is listed on the regulated market segment of the CSE may apply for a dual listing on other major EU stock exchanges such as London Stock Exchange, Frankfurt Stock Exchange, Vienna Stock Exchange, Berlin Stock Exchange, Warsaw Stock Exchange and all other EU member state stock exchanges.

Main vs. Alternative

A number of EU stock exchanges however differentiate a listing on the Main market segment of the CSE to a listing on the regulated Alternative market segment or even the Bond market segment.

So while the HM Customs and Excise in the UK approves an Issuer which lists on the regulated bond market segment of the Cyprus Stock Exchange, the London Stock Exchange or the Frankfurt Stock Exchange may not allow an Issuer which has listed on the Alternative market segment to apply for a dual listing because such an Issuer will not meet the minimum criteria.

This mainly refers to the minimum market capitalization, but more so to the minimum public float, whereby at least 25% of the share capital is held by the wider public.

Main Market listing requirements

An Issuer should have at least EUR 15 mln market capitalization and equity capital exceeding EUR 8.5 mln on listing, otherwise, it should have for each one of the two years prior to listing an equity capital exceeding EUR 13.6 mln.

At least 25% of the shares proposed for listing should be held by the wider public and by at least 1000 natural or legal persons and no shareholder alone as well as all the major shareholders together should not control directly or indirectly a percentage equal to or greater than 75%.

The Issuer should apply the Corporate Governance code, and hence appoint various internal committees such as remuneration, risk, etc.

The Issuer should present audited accounts prepared according to IFRS for at least 4 years prior to listing with a positive net worth for the year prior to listing, and profits for at least two out of three years or three out of five years prior to listing, although the CSE Council may make exemptions.

The minimum value of the shares is EUR 0.26 per share.

Alternative Market listing requirements

An Issuer should have at least EUR 1 mln market cap or equity capital exceeding EUR 1 mln for each one of the two years prior to listing with at least 10% of the proposed shares held by the wider public and by at least 100 natural or legal persons. No shareholder should hold more than 90% of the capital of the company.

The Issuer does not need to apply the Corporate Governance code.

The Issuer should present audited accounts prepared according to IFRS for at least 2 years prior to listing, even though the CSE Council may make exemptions.

For both market segments, Issuers need to employ a Compliance /CSE liason officer, a task which can be outsourced to a professional firm.

Non-Cypriot companies from other jurisdictions are welcome to apply and list on the CSE.

Registry

One of the key advantages of listing on the CSE –all market segments including the MTF Emerging Companies Market is that the registry is fully dematerialised and ready for delivery to Clearstream, Euroclear or Crest (UK, Ireland only) via a specialist firm such as Eurivex Ltd (www.eurivex.com), who have the expertise and knowhow to handle the preparation and submission of the prospectus, completing the listing application and thereafter handling the share registry in the Cyprus CSD Depository on behalf of the Issuers.

The handling and delivery of the registry is a complicated issue that is best entrusted to specialist firms such as Eurivex to handle, both to speed up the process and contain costs.

Very competitive

In today’s competitive environment, price is also important, and here as well, Cyprus has the competitive edge, both with respect to the fees that Issuers need to pay to the regulator to examine the Prospectus as well as the listing fees to the CSE and the fees for the Listing Agent.

A listing on the CSE is estimated to cost one third to one quarter of the cost compared to other EU stock exchanges in addition to the fast and flexible approach of the CSE.

(About the author- Shavasb Bohdjalian (ceo@eurivex.com) is a certified Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. Eurivex is approved by the Cyprus Stock Exchange as Nominated Advisor for listings on the Emerging Companies Market and is a specialist Listing and Paying Agent for listings on the Vienna Stock Exchange. The views expressed above are personal and do not bind the company and are subject to change without notice.)

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November 11, 2013 8:36 am

The Cyprus Stock Exchange offers Issuers from any jurisdiction the opportunity to seek a fast-track dual listing on the London Stock Exchange, Frankfurt Stock Exchange and other EU stock exchanges provided the listing is done on the Main Market of the CSE.

Despite all the problems encountered by Cyprus’ banking sector and the negative publicity generated after the island was rescued by the EC/ECB and the IMF, Cyprus continues to remain an attractive jurisdiction in the eurozone, offering flexible structures and a very pro-business culture ready to accommodate entrepreneurs from around the globe.

The Cyprus Stock Exchange (CSE) operates three regulated market segments of Main, Parallel and Alternative as well as a market segment for Bonds in addition to the MTF Market, which is locally referred to as the Emerging Companies Market (www.cse.com.cy).

The main difference between the various market segments is the minimum capitalization rule, the number of years for which audited accounts should be presented, the minimum public float and degree of implementation of the corporate governance code.

Prospectus

In order to apply to list on the regulated market segments of the Cyprus Stock Exchange (CSE), an Issuer or the applying company first needs to submit its prospectus for the listing to the Cyprus Securities & Exchange Commission (CySEC), after which the Issuer then applies to list on the CSE. The examination and approval of the Prospectus may well take 3 months, while the listing process takes about a month to complete.

Under the EU single-passporting rules, a prospectus approved by CySEC is eligible to be used and circulated in other EU member states subject to minor formalities, which essentially means that an Issuer whose prospectus has been approved by CySEC and is listed on the regulated market segment of the CSE may apply for a dual listing on other major EU stock exchanges such as London Stock Exchange, Frankfurt Stock Exchange, Vienna Stock Exchange, Berlin Stock Exchange, Warsaw Stock Exchange and all other EU member state stock exchanges.

Main vs. Alternative

A number of EU stock exchanges however differentiate a listing on the Main market segment of the CSE to a listing on the regulated Alternative market segment or even the Bond market segment.

So while the HM Customs and Excise in the UK approves an Issuer which lists on the regulated bond market segment of the Cyprus Stock Exchange, the London Stock Exchange or the Frankfurt Stock Exchange may not allow an Issuer which has listed on the Alternative market segment to apply for a dual listing because such an Issuer will not meet the minimum criteria.

This mainly refers to the minimum market capitalization, but more so to the minimum public float, whereby at least 25% of the share capital is held by the wider public.

Main Market listing requirements

An Issuer should have at least EUR 15 mln market capitalization and equity capital exceeding EUR 8.5 mln on listing, otherwise, it should have for each one of the two years prior to listing an equity capital exceeding EUR 13.6 mln.

At least 25% of the shares proposed for listing should be held by the wider public and by at least 1000 natural or legal persons and no shareholder alone as well as all the major shareholders together should not control directly or indirectly a percentage equal to or greater than 75%.

The Issuer should apply the Corporate Governance code, and hence appoint various internal committees such as remuneration, risk, etc.

The Issuer should present audited accounts prepared according to IFRS for at least 4 years prior to listing with a positive net worth for the year prior to listing, and profits for at least two out of three years or three out of five years prior to listing, although the CSE Council may make exemptions.

The minimum value of the shares is EUR 0.26 per share.

Alternative Market listing requirements

An Issuer should have at least EUR 1 mln market cap or equity capital exceeding EUR 1 mln for each one of the two years prior to listing with at least 10% of the proposed shares held by the wider public and by at least 100 natural or legal persons. No shareholder should hold more than 90% of the capital of the company.

The Issuer does not need to apply the Corporate Governance code.

The Issuer should present audited accounts prepared according to IFRS for at least 2 years prior to listing, even though the CSE Council may make exemptions.

For both market segments, Issuers need to employ a Compliance /CSE liason officer, a task which can be outsourced to a professional firm.

Non-Cypriot companies from other jurisdictions are welcome to apply and list on the CSE.

Registry

One of the key advantages of listing on the CSE –all market segments including the MTF Emerging Companies Market is that the registry is fully dematerialised and ready for delivery to Clearstream, Euroclear or Crest (UK, Ireland only) via a specialist firm such as Eurivex Ltd (www.eurivex.com), who have the expertise and knowhow to handle the preparation and submission of the prospectus, completing the listing application and thereafter handling the share registry in the Cyprus CSD Depository on behalf of the Issuers.

The handling and delivery of the registry is a complicated issue that is best entrusted to specialist firms such as Eurivex to handle, both to speed up the process and contain costs.

Very competitive

In today’s competitive environment, price is also important, and here as well, Cyprus has the competitive edge, both with respect to the fees that Issuers need to pay to the regulator to examine the Prospectus as well as the listing fees to the CSE and the fees for the Listing Agent.

A listing on the CSE is estimated to cost one third to one quarter of the cost compared to other EU stock exchanges in addition to the fast and flexible approach of the CSE.

(About the author- Shavasb Bohdjalian (ceo@eurivex.com) is a certified Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. Eurivex is approved by the Cyprus Stock Exchange as Nominated Advisor for listings on the Emerging Companies Market and is a specialist Listing and Paying Agent for listings on the Vienna Stock Exchange. The views expressed above are personal and do not bind the company and are subject to change without notice.)

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September 13, 2013 5:39 pm

The Cyprus Stock Exchange (CSE) announced that it has accepted the listing on its Emerging Companies Market of 100 shares of nominal value €260 of “Vireta Investments Plc” with a listing price of €260.

Eurivex, a Cyprus Investment Firm, regulated by CySEC is the company’s Nominated Advisor and guided the company to its successful listing.

The objective of Vireta is to create value from the acquisition of companies in retail trade and distribution sectors based in Eastern Europe. The trading of the above securities will commence on September 16, 2013 and the Cyprus Stock Exchange will undertake the maintenance of the above Registry in the Central Depository/Registry of the CSE.

The Greek and English code of the shares is ΒΙΡΕ/ VIRE respectively, while the ISIN Code will be CY0103680217.

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September 13, 2013 8:45 am

The Cyprus Stock Exchange (CSE) announced that it has accepted the listing on its Emerging Companies Market of 100 shares of nominal value €260 of “Vireta Investments Plc” with a listing price of €260.

Eurivex, a Cyprus Investment Firm, regulated by CySEC is the company’s Nominated Advisor and guided the company to its successful listing.

The objective of Vireta is to create value from the acquisition of companies in retail trade and distribution sectors based in Eastern Europe. The trading of the above securities will commence on September 16, 2013 and the Cyprus Stock Exchange will undertake the maintenance of the above Registry in the Central Depository/Registry of the CSE.

The Greek and English code of the shares is ΒΙΡΕ/ VIRE respectively, while the ISIN Code will be CY0103680217.

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July 9, 2013 5:26 pm

Private corporations from any jurisdiction are now in a position to issue their corporate bonds and list the bonds on the MTF Market of the Vienna Stock Exchange under simplified listing rules and at very reasonable fees.

The Multilateral Trading Facilities (MTF) are a form of “lite exchange” because they provide similar or competing trading services, such as rulebooks and market surveillance departments, but operate through simplified procedures and at very competitive fees than what it would cost to list financial instruments (shares, bonds, funds) on the traditional stock market segments.

The MTF Market of Vienna Stock Exchange is operated by the regulated Vienna Stock Exchange.
In Vienna they also refer to the MTF Market as the Third Market but trading in bonds goes through the same clearing and settlement structure.

MAIN ADVANTAGES
The biggest advantages for listing in MTF Markets are:
• There is no need to submit prospectus. Listing is done through simplified method.
• A bond listing on an EU stock exchange allows the Issuer regulatory approval to sell the bonds and raise money from investors across the EU28.
• Issuer secures Austrian (AT) International Securities Identification Number (ISIN).
• Listing in major currencies allowed.
• Issuer is under no obligation to provide liquidity.
• Startups without prior history can list their financial instruments.
• Listing is secured in 2 weeks.
• Clearing and custody via OeKB – the Austrian CSD Depository with access to Clearstream/Euroclear.
• Listing costs are significantly lower.
• The level of reporting after listing is lite.
• Trading in the financial instruments is done via brokers on Xetra system.

TYPES OF BONDS
The Vienna Stock Exchange allows for most types of bond listings including:
– Traditional bonds with fixed coupon
– Floating rates
– Zero coupon bonds
– Performance linked bonds*, whose value is tied to the performance of the underlying asset.
*Performance Linked Bonds are increasingly becoming attractive since they spread the risk of performance on the investors.
Such Performance Linked Bonds may also be used for trading in capital markets in derivative products such as trading in shares, bonds and forex. When the trading performance is positive, the NAV will increase, whereas if there are trading losses, the NAV will decline.

AT-ISIN
The Vienna Stock Exchange prefers for Issuers to conduct their private placement of bonds and then list on the Exchange. An Issuer can apply for a larger amount of listing, but list the bonds in tranches of minimum EUR 200.000 lots over several years.
Once the listing procedures have been approved, Eurivex will secure an Austrian AT-ISIN for the bonds.

CLEARING & SETTLEMENT, TRADING
The Issuer also needs to furnish evidence that it meets the requirements for including in trading pursuant to Exchange rules, but Issuer has free choice of clearing system while its Global certificates have to be deposited with Euroclear, Clearstream Luxembourg, the Austrian central custodian OeKB or other custodians having a clearing link with OeKB.
Eurivex, a regulated EU investment firm, which has acted as Listing Agent for more than 15 bond listings on the MTF Market of the Vienna Stock Exchange, is also an approved Paying Agent with its clearing account via OeKB and can deliver listed bonds to customer custodian banks who maintain accounts with Clearstream Luxembourg Bank or Euroclear.
Bonds are traded on Xetra trading system, but Issuer is under no obligation to provide liquidity.

Read More
July 9, 2013 8:48 am

Private corporations from any jurisdiction are now in a position to issue their corporate bonds and list the bonds on the MTF Market of the Vienna Stock Exchange under simplified listing rules and at very reasonable fees.

The Multilateral Trading Facilities (MTF) are a form of “lite exchange” because they provide similar or competing trading services, such as rulebooks and market surveillance departments, but operate through simplified procedures and at very competitive fees than what it would cost to list financial instruments (shares, bonds, funds) on the traditional stock market segments.

The MTF Market of Vienna Stock Exchange is operated by the regulated Vienna Stock Exchange.
In Vienna they also refer to the MTF Market as the Third Market but trading in bonds goes through the same clearing and settlement structure.

MAIN ADVANTAGES
The biggest advantages for listing in MTF Markets are:
• There is no need to submit prospectus. Listing is done through simplified method.
• A bond listing on an EU stock exchange allows the Issuer regulatory approval to sell the bonds and raise money from investors across the EU28.
• Issuer secures Austrian (AT) International Securities Identification Number (ISIN).
• Listing in major currencies allowed.
• Issuer is under no obligation to provide liquidity.
• Startups without prior history can list their financial instruments.
• Listing is secured in 2 weeks.
• Clearing and custody via OeKB – the Austrian CSD Depository with access to Clearstream/Euroclear.
• Listing costs are significantly lower.
• The level of reporting after listing is lite.
• Trading in the financial instruments is done via brokers on Xetra system.

TYPES OF BONDS
The Vienna Stock Exchange allows for most types of bond listings including:
– Traditional bonds with fixed coupon
– Floating rates
– Zero coupon bonds
– Performance linked bonds*, whose value is tied to the performance of the underlying asset.
*Performance Linked Bonds are increasingly becoming attractive since they spread the risk of performance on the investors.
Such Performance Linked Bonds may also be used for trading in capital markets in derivative products such as trading in shares, bonds and forex. When the trading performance is positive, the NAV will increase, whereas if there are trading losses, the NAV will decline.

AT-ISIN
The Vienna Stock Exchange prefers for Issuers to conduct their private placement of bonds and then list on the Exchange. An Issuer can apply for a larger amount of listing, but list the bonds in tranches of minimum EUR 200.000 lots over several years.
Once the listing procedures have been approved, Eurivex will secure an Austrian AT-ISIN for the bonds.

CLEARING & SETTLEMENT, TRADING
The Issuer also needs to furnish evidence that it meets the requirements for including in trading pursuant to Exchange rules, but Issuer has free choice of clearing system while its Global certificates have to be deposited with Euroclear, Clearstream Luxembourg, the Austrian central custodian OeKB or other custodians having a clearing link with OeKB.
Eurivex, a regulated EU investment firm, which has acted as Listing Agent for more than 15 bond listings on the MTF Market of the Vienna Stock Exchange, is also an approved Paying Agent with its clearing account via OeKB and can deliver listed bonds to customer custodian banks who maintain accounts with Clearstream Luxembourg Bank or Euroclear.
Bonds are traded on Xetra trading system, but Issuer is under no obligation to provide liquidity.

Read More
June 20, 2013 5:24 pm

Eurivex Ltd., a Cyprus Investment Firm regulated by Cyprus Securities & Exchange Commission (CySEC) is acting as Paying Agent for corporate bond listings on the Vienna Stock Exchange when the registry is held with the Oesterreichische Kontrollbank Aktiengesellschaft (OeKB).

Oesterreichische Kontrollbank AG (OeKB) is a specialised institution providing central infrastructure for the Austrian capital market. OeKB is Austria’s central securities depository (CSD). It provides centralised custody and administration for nearly all Austrian securities. Also, the CSD is closely interlinked with the CSDs of other countries.

OeKB manages central data pools on Austrian securities, generates analytical data and is the national agency for assigning International Securities Identification Numbers (ISIN). It also acts as the notification office for the purposes of the Capital Markets Act and is responsible for the organisation and running of the automated auction system for government bond issues.

Eurivex, which is a specialized regulated EU investment firm advising corporations from any jurisdiction with their bond listings on the MTF Market of the Vienna Stock Exchange, acts as the Listing Agent preparing the Investment Memorandum and the Terms and Conditions, as well as acting as the Paying Agent for the custody of the bonds through its securities account held and maintained with the OeKB.

When Eurivex is entrusted with the task of acting as Paying Agent, it can deliver the dematerialized bonds to the custodian accounts of the bond purchasers to any custodian account held and maintained with Clearstream and or Euroclear via its link with the OeKB.

Corporations from many jurisdictions are increasingly choosing to list their corporate bonds on the MTF Market of the Vienna Stock Exchange, with clearing and custody held with the OeKB which allows a direct link with Clearstream Luxembourg bank and Euroclear and other international clearing agencies for direct settlement and transfer of securities.

MTF Market

The Multilateral Trading Facilities (MTF) are a form of “lite exchange” because they provide similar or competing trading services, such as rulebooks and market surveillance departments, but operate through simplified procedures and at very competitive fees than what it would cost to list financial instruments (shares, bonds, funds) on the traditional stock market segments.

The MTF Market of Vienna Stock Exchange is operated by the regulated Vienna Stock Exchange.

In Vienna they also refer to the MTF Market as the Third Market but trading in bonds goes through the same clearing and settlement structure.

MAIN ADVANTAGES

The biggest advantages for listing in MTF Markets are:

  • There is no need to submit prospectus. Listing is done through simplified method.
  • A bond listing on an EU stock exchange allows the Issuer regulatory approval to sell the bonds and raise money from investors across the EU27.
  • Issuer secures Austrian (AT) International Securities Identification Number (ISIN).
  • All kinds of denominations possible.
  • There is no minimum or maximum ownership rule.
  • The concept of using nominees is legally allowed.
  • There is no minimum volume rule. This means even if for the whole year there is no volume traded on the financial instruments, this is acceptable.
  • Startups without prior history can list their financial instruments.
  • Listing is secured on average in 2 weeks.
  • All applications submitted by e-mail.
  • Listing costs are significantly lower.
  • The level of reporting after listing is negligible.
  • Trading in the financial instruments is done via brokers.

 

TYPES OF BONDS

The Vienna Stock Exchange allows for most types of bond listings including:

–          Traditional bonds with fixed coupon

–          Floating rates

–          Zero coupon bonds

–          Performance linked bonds*, whose value is tied to the performance of the underlying asset.

*Performance Linked Bonds are increasingly becoming attractive since they spread the risk of performance on the investors.

Such Performance Linked Bonds may also be used for trading in capital markets in derivative products such as trading in shares, bonds and forex. When the trading performance is positive, the NAV will increase, whereas if there are trading losses, the NAV will decline.

AT-ISIN

The Vienna Stock Exchange prefers for Issuers to conduct their private placement of bonds and then list on the Exchange. An Issuer can apply for a larger amount of listing, but list the bonds in tranches of minimum EUR 200.000 lots over several years.

Eurivex will secure an Austrian AT-ISIN for the corporate bonds when it is appointed as Listing and Paying Agent.

Eurivex Contact details

 

Head Office Address:     2 Armenias Street, Office 101, Nicosia 2003, Cyprus

 

Telephone                                          +357 22 02 88 31                            Fax +357 22 25 53 18

 

Web site:                                             www.eurivex.com                         Enquiries: SHAVASB@EURIVEX.COM

 

Eurivex is regulated by Cyprus Securities & Exchange Commission CySEC, license 114/10.  © Eurivex Ltd. 2012. All rights reserved. No part of this document may be reproduced, stored or transmitted in any form or by means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Eurivex Ltd. The material in this document is for informational purposes only and does not constitute legal or professional advice. No responsibility or liability is accepted by Eurivex Ltd in connection with the use of information contained in this document.

 

 

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June 20, 2013 9:03 am

Eurivex Ltd., a Cyprus Investment Firm regulated by Cyprus Securities & Exchange Commission (CySEC) is acting as Paying Agent for corporate bond listings on the Vienna Stock Exchange when the registry is held with the Oesterreichische Kontrollbank Aktiengesellschaft (OeKB).

Oesterreichische Kontrollbank AG (OeKB) is a specialised institution providing central infrastructure for the Austrian capital market. OeKB is Austria’s central securities depository (CSD). It provides centralised custody and administration for nearly all Austrian securities. Also, the CSD is closely interlinked with the CSDs of other countries.

OeKB manages central data pools on Austrian securities, generates analytical data and is the national agency for assigning International Securities Identification Numbers (ISIN). It also acts as the notification office for the purposes of the Capital Markets Act and is responsible for the organisation and running of the automated auction system for government bond issues.

Eurivex, which is a specialized regulated EU investment firm advising corporations from any jurisdiction with their bond listings on the MTF Market of the Vienna Stock Exchange, acts as the Listing Agent preparing the Investment Memorandum and the Terms and Conditions, as well as acting as the Paying Agent for the custody of the bonds through its securities account held and maintained with the OeKB.

When Eurivex is entrusted with the task of acting as Paying Agent, it can deliver the dematerialized bonds to the custodian accounts of the bond purchasers to any custodian account held and maintained with Clearstream and or Euroclear via its link with the OeKB.

Corporations from many jurisdictions are increasingly choosing to list their corporate bonds on the MTF Market of the Vienna Stock Exchange, with clearing and custody held with the OeKB which allows a direct link with Clearstream Luxembourg bank and Euroclear and other international clearing agencies for direct settlement and transfer of securities.

MTF Market

The Multilateral Trading Facilities (MTF) are a form of “lite exchange” because they provide similar or competing trading services, such as rulebooks and market surveillance departments, but operate through simplified procedures and at very competitive fees than what it would cost to list financial instruments (shares, bonds, funds) on the traditional stock market segments.

The MTF Market of Vienna Stock Exchange is operated by the regulated Vienna Stock Exchange.

In Vienna they also refer to the MTF Market as the Third Market but trading in bonds goes through the same clearing and settlement structure.

MAIN ADVANTAGES

The biggest advantages for listing in MTF Markets are:

  • There is no need to submit prospectus. Listing is done through simplified method.
  • A bond listing on an EU stock exchange allows the Issuer regulatory approval to sell the bonds and raise money from investors across the EU27.
  • Issuer secures Austrian (AT) International Securities Identification Number (ISIN).
  • All kinds of denominations possible.
  • There is no minimum or maximum ownership rule.
  • The concept of using nominees is legally allowed.
  • There is no minimum volume rule. This means even if for the whole year there is no volume traded on the financial instruments, this is acceptable.
  • Startups without prior history can list their financial instruments.
  • Listing is secured on average in 2 weeks.
  • All applications submitted by e-mail.
  • Listing costs are significantly lower.
  • The level of reporting after listing is negligible.
  • Trading in the financial instruments is done via brokers.

TYPES OF BONDS

The Vienna Stock Exchange allows for most types of bond listings including:

– Traditional bonds with fixed coupon

– Floating rates

– Zero coupon bonds

– Performance linked bonds*, whose value is tied to the performance of the underlying asset.

*Performance Linked Bonds are increasingly becoming attractive since they spread the risk of performance on the investors.

Such Performance Linked Bonds may also be used for trading in capital markets in derivative products such as trading in shares, bonds and forex. When the trading performance is positive, the NAV will increase, whereas if there are trading losses, the NAV will decline.

AT-ISIN

The Vienna Stock Exchange prefers for Issuers to conduct their private placement of bonds and then list on the Exchange. An Issuer can apply for a larger amount of listing, but list the bonds in tranches of minimum EUR 200.000 lots over several years.

Eurivex will secure an Austrian AT-ISIN for the corporate bonds when it is appointed as Listing and Paying Agent.

Eurivex Contact details

Head Office Address: 2 Armenias Street, Office 101, Nicosia 2003, Cyprus

Telephone +357 22 02 88 31 Fax +357 22 25 53 18

Web site:                                             www.eurivex.com                         Enquiries: SHAVASB@EURIVEX.COM

Eurivex is regulated by Cyprus Securities & Exchange Commission CySEC, license 114/10. © Eurivex Ltd. 2012. All rights reserved. No part of this document may be reproduced, stored or transmitted in any form or by means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Eurivex Ltd. The material in this document is for informational purposes only and does not constitute legal or professional advice. No responsibility or liability is accepted by Eurivex Ltd in connection with the use of information contained in this document.

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March 12, 2013 2:25 pm

Mainer Investment Limited has successfully listed its bonds on the MTF Market of the Vienna Stock Exchange with the objective of raising funds to finance ambitious investment and industrial projects in Russia.

Mainer Investment Limited (Mainer) received regulatory permission to list up to USD 500 mln of its 2012-2020 bonds on the Multilateral Trading Facility (MTF) Market of the Vienna Stock Exchange.

The listing commenced on March 4, 2013. The Mainer bonds (ISIN-AT0000A0ZBC1) are floating, at 6.5% spread over 6 month LIBOR. The rate for the first period ending 30th June 2013 is 7% with the accrued interest paid every six months. The bonds are held at Central Securities Depository (CSD) of the Oesterreichische Kontrollbank (OeKB).

Eurivex Ltd, a Cyprus based regulated EU Investment Firm is the Paying and Listing Agent.

The Bond issue is backed and secured by Mainer’s own assets.

PROJECTS IN RUSSIA

Mainer is using its strong balance sheet to raise funds in order to invest in two ambitious projects in Russia, said Chairman of the Board and one of the co-founders of the company, Oleg Vlasov.

Dmitry Pavlov and Evgeny Korotaev are the other two executive members of the Board of Mainer.

“Mainer will invest up to $400 mln from the bond proceeds to fund the purchasing equipment for reconstruction of oil refineries of Rosneft, Russia’s leading extraction and refinement company,” said Vlasov, clarifying that the project is to provide purchasing of main equipment for reconstruction of oil refineries of Rosneft to make outgoing gasoline in higher quality level and worldwide standards Euro4, Euro5.

“The project value is in excess of $400 mln based on signed contracts between the parties to the agreement,” said Finance Director Korotaev, adding that Mainer is essentially acting as the financing company providing funds for the completion of the project, which may be done in stages, effectively reducing the investment risk.

Mainer will also gradually invest $100 mln from the bond proceeds to fund the construction of an automated parking system in Moscow and other Russian cities in cooperation with A-Finance Ltd and Hanwha Group (South Korea).

All investment projects undertaken by Mainer have been professionally verified backed by feasibility studies proving their financial viability based on firm commitments and signed agreements to achieve the intended results in the nearest future.

 

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March 5, 2013 5:23 pm

High growth companies or existing companies that wish to expand their operations are most likely to be in need of funding assistance. Previously such companies would raise the necessary funds from the banks, but in view of the reluctance of banks to lend or because of their policy of offering funds at high lending fees, many companies have decided to approach investors and raise funds directly.

The two most popular methods of raising funds are:

–          Share listing

–          Bond offering

Companies may issue shares or bonds directly to the investing public, but the more efficient method is to go through a recognized stock exchange and list the shares or bonds on such an exchange through which investors will have easier access to the financial instruments, enjoy security of transaction and be in a position to secure additional information on the Issuer.

 

Fund Raising

Listing financial instruments (shares or bonds) on a recognised stock market is however one part of the transaction. The other part is raising the funds from investors. Many CEO’s or company presidents believe that by simply listing their shares or bonds on a particular market, investors will rush and snap up their issues and they will reach their fund raising targets. Unfortunately, that is not the case.

A company needs to market itself and attract attention and interest in a very crowded and competitive environment where companies from all jurisdictions are competing for funds.

Well established companies with a solid reputation and strong balance sheet usually turn to multinational global banks to assume responsibility for both their listing and fund raising but subject to having the ability to paying millions in fees to the investment bankers.

Small to medium sized companies who cannot pay such a high cost may turn to more affordable alternative solutions such as finding an investment firm which will guide them through the listing and funding companies that may provide funds and or use the direct approach of using a listing on a recognized stock exchange such as Cyprus to approach investors directly.

Eurivex is a regulated investment firm specializing in guiding companies to successfully list their shares or bonds on recognized EU stock exchanges such as Cyprus and cooperates closely with specialist funding sources in arranging for funding for companies that utilize the listing services of Eurivex.

Working closely with the clients, Eurivex identifies the funding needs of the clients and then makes the introduction to the funding sources which include major European global banks, private equity and venture capital as well as institutional funds.

The success of the fundraising will however depend on the:

–          Quality of the issuer

–          History and in which industry it is involved

–          The Company’s previous track record, profitability and balance sheet size

–          How much are the existing owners contributing into the project

–          Where and how the proceeds of the funds will be used

–          What is the return objectives

–          The management team and members of the Board

–          What contingency plans the Company has in the event of adverse market conditions
Some of the funding sources with whom Eurivex cooperates charge a monthly retainer in addition to a success fee, while others only apply a success fee.

Eurivex does not cooperate with funding sources who demand an introduction fee or other gimmicks, the objective of which is to secure up-front cash from the borrower before delivering the funding.

The majority of funding sources apply their own rules of how companies can qualify.

 

Direct approach

One of the most effective and cost-efficient methods to keep interest on a stock high and attract investor attention and funds is the use of social media networking, as well as traditional media outlets through which a company can remind investors of how it is achieving and surpassing its goals and delivering outstanding results.

Another approach is to establish a regulated investment fund to raise funds the objective of which is to invest in a particular business.

In Cyprus such regulated private funds are known as International Collective Investment Schemes (ICIS), which at the moment are supervised by the Central Bank of Cyprus. The legal basis of an ICIS is a limited liability company but with variable capital. When there is demand from investors, it will issue shares or units directly to investors without going through the Registrar of Companies and when investors exit, the shares or units are canceled. The entry/exit is based on latest Net Asset Value (NAV) according to the terms and conditions stipulated in the Private Offering Memorandum. An ICIS can sell its shares/units to maximum 100 investors, classified as professional under MiFID rules and each with minimum EUR 50.000 investment. There are more than 100 such funds operating under the supervision of the Central Bank of Cyprus.

 

Shavasb@eurivex.com

(Shavasb Bohdjalian is a certified Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. Eurivex is also approved to act as Nominated Advisor for listings on the Emerging Companies Market of the Cyprus Stock Exchange and approved to act as Listing Agent on behalf of Issuers wishing to list their securities on the Vienna Stock Exchange. Eurivex offers complete packages and solutions for all types of listings including structuring assistance. The views expressed above are personal and do not bind the company and are subject to change without notice)

 

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Disclaimer & Regulatory information
Eurivex Ltd is a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), License number 114/10. Company Reg. HE 255430. Headquartered and based in Cyprus, member of EU.

Risk warning: Investing in financial instruments and other derivatives involves a high degree of risk and may not be suitable to all investors. Trading in such financial instruments can result in both an increase and decrease in capital. If you invest through Eurivex Ltd, the value of investments may go down and your capital will be at risk. Eurivex Ltd operates a secondary market but there is no guarantee that all buy/sell orders will be completed at the desired prices and there is a risk that an order may not be completed in the Eurivex secondary market if there is no matching order. There is no guarantee that you will be able to exit early by selling your investment. Eurivex Ltd does not provide investment, tax or legal advice. If you are unsure about the suitability of an investment, you should speak to a financial adviser. Please refer to our Risk Warning available on our web site for further information.