Plain Vanilla Securities
Plain vanilla securities cover Debt where the issuer is obliged to pay the holder of the security 100 % of the redemption amount, as well as a potential coupon payment.
They always have a fixed redemption amount but can have different coupon structures built into them such as fixed, index linked or floating coupon payments.
Issuers currently have two markets on to which to have their plain vanilla securities admitted to trading:
- the London Stock Exchange (LSE) Regulated Market, which is an EU regulated market under MiFID; and
- the LSE Professional Securities Market (PSM), which is regulated by the LSE but is not an EU regulated market under MiFID.
Under the EU prospectus directive, the issuer must publish a prospectus in relation to Debt being admitted to trading on an EU regulated market and/or if they are being offered to the public.
When a prospectus is not required under the prospectus directive and the issuer is seeking admission to the exchange regulated PSM, listing particulars regarding the Debt will need to be prepared in line with the relevant listing rules and approved by the Global Debt Group
Where a prospectus or listing particulars is required, it will need to be prepared in line with the relevant prospectus and listing rules, and approved by the Global Debt Group.
To be eligible for admission to the Official List, issuers of plain vanilla securities must meet the requirements set out in LR 2 and LR 17.