Redemption Linked Securities
Redemption linked securities covers Debt where the redemption amount is linked to an underlying. There may also be a coupon payment.
Redemption linked securities, such as index-linked notes, may also be principally protected. However, so long as the redemption amount of the securities is linked to an underlying, the Global Debt Group will treat them as redemption linked securities.
There are two Recognised Investment Exchanges (RIEs) in the UK which admit redemption linked securities to trading:
- the London Stock Exchange (LSE) operates the Regulated Market, and
- the LSE Professional Securities Market (PSM). Securities admitted to these markets will be admitted to the Official List.
- PLUS Markets also operate three markets: PLUS Listed; PLUS Quoted and PLUS Traded.
Under the EU prospectus directive, the issuer must publish a prospectus in relation to the redemption linked securities if these are 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 a listed but unregulated market, eg the PSM, listing particulars regarding the redemption linked securities will need to be prepared in line with the relevant listing rules and approved by the Global Debt Group.
Where a prospectus/listing particulars is required, it must 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 redemption linked securities must meet the requirements set out in LR 2 and LR 17.