Clearstream is launching its Global Issuer Hub in the run-up to next month’s 50th anniversary of the first Eurobond issuance by Italian motorway network Autostrade.
The Global Issuer Hub is new in that it consolidates all issuance services into one access point, making issuances more efficient.
Through the Global Issuer Hub, customers have access to end-to-end issuance services and can reach investors anywhere in the world.
Increasing market demand for ways to issue securities globally forms part of the backdrop to Clearstream’s Global Issuer Hub. This trend is reflected in the growth of the worldwide debt capital market, which grew by 18 per cent between 2008 and 2012 (from USD85trn to USD100trn) despite the challenging global economic climate.
Marc Kieffer, head of issuance & distribution services at Clearstream, says: “The market has been right to look for more international, holistic and efficient models for securities’ issuance and today we are able to offer this in the form of our Global Issuer Hub. Issuers and investors will now be able to enjoy our global reach, local expertise worldwide and full suite of customised services over the entire issuance cycle from admission to distribution and asset servicing.”
Clearstream has historically been the place of issuance for international securities, initially supporting the emergence of the Eurobond market in the 70s. Since then, Clearstream has pioneered and helped shape new innovative issuance models such as dual note structures, which bridge the Eurobond market and the US market.
Continuing to create and shape innovative models for new issuance services, Clearstream is building on its more than 40 years of issuance experience in debt capital markets worldwide. In particular, its Global Issuer Hub positions customers well to issue in and access markets anywhere in the world, be it exchange traded funds (ETFs), Islamic finance or so-called “dim sum” bonds. The number of offshore renminbi (RMB) denominated bond issuances Clearstream facilitated in 2012 already saw a 71 percent increase compared to 2011.
The Global Issuer Hub is also set to offer issuers assistance with the state-of-the art Luxembourg regime which has recently been implemented for dematerialised securities issued under Luxembourg law. In addition to removing the need for issuing physical global notes, this new regime will provide an improved, low-risk environment for issuers with special focus on issuance and asset services.
Operating out of Frankfurt, London, Luxembourg, Prague and Singapore, the Clearstream Global Issuer Hub facilitates issuance of all types of debt instruments, warrants, equities and investment funds in 46 settlement and 96 denomination currencies in both central bank (EUR) and commercial bank money.
The Global Issuer Hub offers a very large investor pool via a network of 2,500 financial institutions from 110 countries. In addition, with over 50 central securities depositories (CSDs) worldwide currently connected to Clearstream, Clearstream’s Global Issuer Hub offers issuers an extensive distribution network accessible through one access point, be it via the Clearstream international central securities depository (ICSD) or its respective German and Luxembourg CSDs. Looking ahead, Clearstream will further extend this network when it joins the future European harmonised settlement platform TARGET2-Securities.