Corporate Bond listings on Vienna Stock Exchange

Nicosia – The Vienna Stock Exchange, one of the oldest exchanges in the world, allows private companies from most jurisdictions to issue and list their bonds on the MTF Market under simplified listing rules and conditions and at very reasonable rates.

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 (Vienna MTF) is operated by the regulated Vienna Stock Exchange.

MAIN ADVANTAGES

The biggest advantages for listing in MTF Markets are:

1. There is no need to submit prospectus. Listing is done through simplified method.
2. All major currencies possible.
3. There is no minimum or maximum ownership rule.
4. 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.
5. Startups without prior history can list their financial instruments.
6. Listing is secured on average in 2 weeks.
7. All applications submitted by e-mail.
8. Listing costs are significantly lower.
9. The level of reporting after listing is negligible.
10. Trading in the financial instruments is done via brokers.

TYPES OF BONDS

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

• 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.

SIMPLIFIED PROCEDURES

One of the key advantages of listing on the Vienna MTF is that the Exchange accepts all documentation in English and by e-mail.

Listing authorisation is secured directly from the Exchange and not through the regulator.
Eurivex, acting as listing agent will prepare the Information Memorandum as well as Terms and Conditions of the bond issue and liaison with the Vienna Stock Exchange until the listing is secured.

CLEARING & SETTLEMENT, TRADING

The Issuer needs to furnish evidence that it meets the requirements for including in trading pursuant to Exchange rules, which means the clearing and settlement need to be established in Euroclear, Clearstream or the UK’s CREST.
Bonds are traded on Xetra trading system, but Issuer is under no obligation to provide liquidity/to quote, since no actual trading is legally required.

DOCUMENTS REQUIRED

Issuer will need to furnish full corporate documents including Certificate of Incorporation, Shareholder and Director Registry, Memorandum & Articles of Association as well as provide basic KYC documentation of Company directors/principal owners.

Issuer will also provide additional information in order for Eurivex to prepare the Information Memorandum and other documents required for the listing.

TIME FRAME

When all the documents in the correct form have been provided, it will take Eurivex 1-2 weeks to prepare and submit the first draft Information Memorandum to the Vienna Stock Exchange for review, secure the ISIN, complete the bond dematerialization and electronic delivery to the clearing and settlement destination and secure the final listing approval after 1 week.