July 17, 2014 5:25 pm

The Cyprus Stock Exchange (CSE) announced that effective Monday 6 October 2014 the settlement cycle of the transactions executed on listed securities that are traded on its markets will be shortened from T+3 (completion of settlement within three working days after the execution of a transaction) to T+2 (completion within two working days). This change is in accordance with the Central Securities Depository Regulation (CSDR), which among others aims to harmonise the securities settlement cycles in the European Union.

The CSE provided the following information regarding the change:

§ Migration to the T+2 settlement cycle, will take place on Monday 6 October 2014.

§ Trades executed until Friday 3 October 2014 will be settled following a T+3 settlement cycle, which means three days after the execution of the transaction.

§ Trades executed as of Monday 6 October 2014, will be settled following a T+2 settlement cycle, which means two days after the execution of the transaction.

Please note that the change to the settlement cycle from T+3 to T+2 will also apply in the cases of Over the Counter (OTC) trades which will be executed on the Central Registry/ Depository of the CSE.

Arrangements for the transition to T+2:

The settlement days for the transitional period are defined as follows:

Trade Day Settlement Day
Thursday, 2 October 2014 Tuesday, 7 October 2014
Friday, 3 October 2014 Wednesday, 8 October 2014
Monday, 6 October 2014 Wednesday, 8 October 2014
Tuesday, 7 October 2014 Thursday, 9 October 2014

Consequently, trades executed on Friday 3 October 2014 and on Monday 6 October 2014 will be settled on Wednesday 8 October 2014.

Particularly for the settlement of the trades with trade date Friday 3 October 2014, a different parameter value will be used within the Dematerialised Securities System for the Securities Settlement System. Specifically:

Normal parameter
for the
Securities Settlement System Provisional parameter for the
Securities Settlement System
100 101
120 121
130 131

Impact for Corporate Actions:

For the corporate actions that will be executed with record date from Wednesday 8 October 2014 and onwards the following will apply:

§ The ex-date for corporate actions e.g. cash distribution etc., will move from 2 business days before the record date, to 1 business day before the record date.

Ex Date = Record Date -1 (previously Ex Date = Record Date -2)

§ The last day of trading which applies to conversions of shares from one category to another, e.g. the reverse split etc., will be set to 2 business days preceding the record date.

Last Trading Date = Record Date -2 (previously Last Trading Date = Record Date -3)

Schedule:
§ July 2014 – Implementation of the required changes in the test environment of the Dematerialised Securities System and execution of migration tests.
§ September 2014 – Implementation of the required changes to the Regulatory Framework.
§ October 2014 – Migration in the production environment of the Dematerialised Securities System.

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March 6, 2014 5:23 pm

Listing and Paying Agent for delivery of bonds into Clearstream

Eurivex Ltd., a regulated EU investment firm based in Cyprus has successfully concluded its 25th listing on an EU stock exchange on behalf of its clients. The most recent listing referred to a corporate bond listing on the Vienna Stock Exchange.

Eurivex, which is regulated by the Cyprus Securities & Exchange Commission (CySEC), is licensed to act as Listing Agent for listings on the Vienna Stock Exchange and as Nominated Advisor for listings on the Emerging Companies Market of the Cyprus Stock Exchange.

During the past two years, Eurivex has acted on behalf of 25 Issuers listing their shares or corporate bonds on both Vienna Stock Exchange and the Cyprus Stock Exchange.

Some of the Issuers on whose behalf Eurivex has acted include Wargaming, the global gaming company with its flagship “World of Tanks” online game, Barilla S.p.A, the global branded food corporation with a focus on pasta, sauces and bakery products, manufactured and sold both in Italy and worldwide, Hyperion Life Assets and Grid Essence Holdings, the independent power producer, generating electricity from 100% renewable energy resources.

 

Listing Agent

Corporations, private or public from around the world can issue corporate bonds and list them either on the Vienna Stock Exchange or the Cyprus Stock Exchange. Only Public corporations (PLCs), or AGs may issue and list their shares on EU stock exchanges.

Being a regulated investment firm in an EU member state, in this case Cyprus allows Eurivex to utilize to the full the EU’s single-passporting rules and extend its specialist service to also cover the Vienna Stock Exchange.

Once the decision has been made to list, Issuers can leave the rest to Eurivex to handle including preparation and submission of Information Memorandum, all the relevant other forms until the Issuer’s application is successfully concluded.

 

Paying Agent

Eurivex has acted as safe custodian of the bonds and in many cases as the Paying Agent on behalf of its clients. Eurivex has the expertise to convert the shares or bonds into dematerialized form and deliver the financial instruments electronically to the Oesterreichische Kontrollbank AG (OeKB), the Austrian Custodian bank as well as the Cyprus Stock Exchange CSD Depository.

 

Delivery to Clearstream, Euroclear

On behalf of Issuers who appoint Eurivex to act as their Paying Agent, Eurivex is in a position to deliver and receive the corporate bonds via its OeKB account to Clearstream, Euroclear and other Depositories.

Using the real-time settlement system DS.Advanced (DS.A) for OTC settlements, Eurivex can deliver and take delivery of financial instruments with Clearstream and Euroclear via its OeKB account and also conclude Delivery vs. Payments on behalf of its clients.

 

Share Registrar/Safe Custody

Eurivex is currently acting as Share Registrar and custodian on behalf of Issuers who successfully listed their shares on the Emerging Companies Market (ECM) of the Cyprus Stock Exchange.

The share registrar service allows the Issuers to concentrate on their core business, leaving the safe custody of their share registry and shareholder activity to Eurivex to handle in a flexible, efficient and cost effective way.

 

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February 7, 2014 5:22 pm

Barilla G. e R. Fratelli S.p.A, the global branded food corporation with a focus on pasta, sauces and bakery products, manufactured and sold both in Italy and worldwide successfully concluded the listing of its USD 150 mln Guaranteed Senior Notes issue on the Vienna Stock Exchange.

Eurivex Ltd, an EU regulated investment firm based in Cyprus acted as the Listing Agent for the listing of the notes on the MTF Market of the Vienna Stock Exchange.
The bonds, which are guaranteed and mature December 13, 2025 pay a 4.43% interest rate.

Barilla Group is the largest durum wheat pasta manufacturer in the world and maintains market leading positions with most of its brands such as Barilla, Voiello, Misko, Filiz, Yemina and Vesta. The Group is also the market leader for baked products in Italy and holds market leading positions in several bakery product categories across Europe through brands such as Mulino Bianco, Pavesi, Wasa and Harry’s.

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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.

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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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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.