Euronext expands listed private placement bonds offer

It gives issuers of private placement bonds—Euro PP [1], High Yield [2], mutualized bonds or securitisation vehicles — easier access to Euronext markets in France, Belgium and Portugal, thus expanding their investor base.

Listed private placement bonds—fast, efficient access to medium- and long-term financing

Private placement bonds give businesses a medium- and long-term debt instrument offering an alternative to bank lending, along with longer maturities. Issues can be redeemed at maturity, are flexible in size, and are competitive in terms of cost.

Increasingly popular, as seen in the boom in standardized products such as Euro PPs and High Yield bonds, they reflect the combined impact of demand from issuers seeking to diversify their sources of finance and investors seeking higher returns.

Listing a private placement bond issue also gives companies access to a larger group of potential investors while raising issuers’ visibility and profile.

Euronext Private Placement Bonds—a simple, competitive listing process

Euronext Private Placement Bonds give SMEs [3] and large companies, rated or non-rated, both listed and unlisted, a simple means of raising funds through bonds.

With EPPBs, these businesses can now list private placement bond issues on Alternext using a fast, simple and standardised procedure that is also attractive in terms of cost.

Accounting requirements are adapted to their needs, as are financial reporting and monitoring requirements (no prospectus [4], no compulsory publication of annual or half-year results, and no listing sponsor) that meet investors’ requirements.

The benefits for investors are equally clear, including access to a broader private placement market that is both secure and transparent, and that guarantees trade execution.

Marc Lefèvre, Euronext’s head of Business Development and Client Coverage, said “We are confident that our EPPB offer will make Euronext the market of choice for listing private placement bonds in Europe, and will boost our competitive edge in the primary bond market. Designed to meet our clients’ needs in a timely and efficient way, EPPBs are a natural stage in the disintermediation of finance. They will give European companies—particularly SMEs—easier access to capital markets.”